Arizona health insurance premiums, Here, are on the rise, all thanks to Obamacare. The CBO now realizes the error of their ways and has issued a report claiming that premiums will increase by 27%-30% because of the new law.
I have seen this firsthand. Owning an Arizona health insurance agency, the quotes that are coming in are incredibly high. Especially for the small business owner, their premiums have already gone through the roof since January 1st of 2011. A family of four that operate a local business was recently quoted nearly $4000 a month to insure them on a group plan with a $7500 deductible. Yes, there are pre-existing conditions present, but nothing out of the norm.
What I am also seeing are a few of the large insurers in town low-balling groups to get their business. In twelve months the group will get a shocking reality check. After 30 years in the business, I have seen this happen before. What is different this time though is that the commissions paid on these small groups has been cut dramatically, on average 75%. Because Obamacare dictates how much a private company can spend on administrative costs, the result will not be in the public’s best interest. This will no doubt lead to certain, “professionals,” pointing their clients into a product that may not be in their best interest, a product that pays more commission.
If ever there were a time for honest brokers it is now. The general public has nearly no idea what the ramifications are with Obamacare, only that it will cost them more in premium.
Employers that I know have said that, if the law stands, they will drop their group health insurance policy in 2014 and pay the fine instead, saving them thousands of dollars a year. They will be forced to drop coverage because their competitor will have done so, giving them an unfair advantage if they do not do the same. For the meantime though these employers have said that they will not hire new employees until this law is settled one way or another.
With a little luck the Supreme Court will take the case soon, saving everyone a lot of money, time, and worry.
Michael Higgins