In today’s paper there is an article about all the benefits of the new health insurance law and how Arizonans will be positively affected.
The most ridiculous claim in the article is that individual and family health insurance premiums will be lowered. The largest health insurer in Arizona, BCBSAZ, has already stated that these rates will likely go up by 30%.
Another point made in the article is that 1.3 million people in Arizona will now have medical insurance. Supposedly 750,000 of them will receive tax credits to buy the health insurance. I question these totals, but more importantly I know that it doesn’t matter. If the tax credit pays for about 30% of the premium, and premiums go up about 30%, we have what you would call, “a wash.” If the uninsured can’t afford Arizona health insurance now or don’t want it, and the price will be the same as it is today, why would anyone believe that all of these people are going to go out and buy a medical insurance policy. They won’t. Why should they. Now that the health insurance companies can’t deny coverage to those that apply, the uninsured will simply wait until they become sick or injured before purchasing an Arizona health insurance policy.
The article also says that nearly 64,000 small businesses may get a tax credit to help pay for group health insurance. This tax benefit, when you read the fine print, is a classic bait and switch plan. It will slow growth and convince many companies to drop coverage.
The benefits outlined in this article are so far from reality it is almost comical. Unfortunately, none of us will be laughing in 2014 when most of the health insurance laws kick in.
Michael Higgins
602.405.8769
An Arizona health insurance agent.