One need only look to Massachusetts to see what is coming on a national level regarding health insurance in Arizona and elsewhere in 2014. The governor has mandated that all health insurance companies in MA. submit their requests for rate increases to the local medical insurance commissioner for approval at least 30 days before they are to go into effect. Sounds fair enough. Arizona has a similar law. What is not similar is the fact that the Massachusetts commissioner denied 86% of the requests. In a state where competition is non-existent due to Romneycare, denying rate increases must have a political slant involved.
Health insurance carriers in MA. have sued, leaving individuals and small businesses wondering what they will pay for insurance coverage, and those shopping for coverage unable to receive quotes.
The two main reasons why health insurance companies in Massachusetts need to raise their premium rates? One, the young are not buying the mandated health insurance policies required by law, and two, mandated benefits that each policy must include whether the policyholder wants such coverage or not. If you are young and healthy in Massachusetts it is likely you will not buy health insurance until it is needed. The end result, insurers increasing their premium rates nearly 40% to cover the losses. This is what we have to look forward to in Arizona in 2014.
Michael Higgins
602.405.8769
An Arizona health insurance broker.