United Health Care (UHC), the largest health insurance company in the US, yesterday held a webinar for agents on changes they will be making to their products to comply with the Affordable Care Act (ACA). This is the first time that I have seen a major carrier give specific cost increase estimates for medical insurance plans. They said that “consumers (both group and individual buyers) will face substantial price increases… (and) new pricing rules and product design mandates will have a significant impact on the price consumers pay for insurance in 2014 and beyond.”
UHC presented a graph that estimated the premium increases in various market segments likely in 2014 as a result of the requirements of the ACA. UCH estimates that premiums will increase 116% in the individual market; 25-50% in the small group market; and, 20-25% in the large group market.