Individuals and Small Businesses with health insurance coverage are acting to take advantage of one last chance to keep their current policies, and premium rates, for the year 2014. Why the rush? Because insurance customers are required to buy the new ACA mandated plans at their first renewal in 2014. By taking advantage of early renewal offers by their insurance companies, consumers can renew their 2013 health plan and keep that plan throughout 2014. Many consumers are finding the 2013 plans and rates much more favorable than the new 2014 plans and rates.
But, why would the rates be more favorable right now? As we have discussed in previous posts, the Affordable Care Act (also known as the ACA, or Obamacare) has mandated several requirements for insurance plans beginning in 2014. In order to plan for the costs anticipated by the requirements, insurance actuaries may set higher premiums to make sure that the company remains healthy enough financially to pay all of the expected claims. Therefore, premium rates for many 2014 policies are much higher, by as much as 40% or more on many plans for a wide range of companies.
Ask your insurance agent to help you if you think an early renewal is a good option for you. You must act quickly on this choice however, in order to have your renewal take effect before 2014.
Patient Protection & Affordable Care Act (PPACA) information discussed in communications is most accurate as of this date. The Department of Health & Human Services may amend or change federal regulations at any time.