Major insurers surveyed about potential premium increases in six major markets expect premiums to increase by an average of 169 percent in 2014 for younger and healthier individuals.
American Action Forum asked insurers about the impact of the Affordable Care Act (ACA) in the Chicago, Phoenix, Atlanta, Austin, Milwaukee and Albany markets. Despite variation by geography,
the overall trend showed that younger and healthier male individual policyholders are expected to see the highest premium insurance, 189 percent, in 2014.
The survey (PDF) does note that since individual premiums can be as low as $50 a month for young and healthy individuals, an increase can appear very large when measured on a percentage basis. The trends for young and healthier individuals also applied f
or small employers with a predominantly younger and healthier work force.
For older and less healthy individuals, premiums are predicted to decline by an average of 22 percent while small group premiums for employers with older less healthy workers will decline an average of 26 percent. The decline is attributed to the spread of risk across a larger base broadened by
expanded coverage for younger individuals and workers under ACA reforms.
(The American Action Forum is a forward-looking policy institute dedicated to keeping America strong, free and prosperous. It seeks to promote common-sense, innovative, and solutions-based policies that will reform government, challenge out-dated assumptions, and create a smaller, smarter government that will serve its citizens better.)