A study released by the Society of Actuaries has found that President Barack Obama’s Affordable Care Act may prove more costly than advocates originally suggested.
The study calculates that the cost of claims made through individual health insurance plans will jump by an average 32% after 2014. The sharp increase will be driven by the higher costs of treating high-risk patients who will purchased individual plans under the health care law, the Wall Street Journal noted.
Advocates of the health care law — commonly known as Obamacare — had argued that extending individual health plans to cover more people would offset any additional costs for treating high-risk people. However, the Society found that that those people will gravitate toward individual plans, causing costs in those plans to spiral upward.
Large companies have already complained about hidden health insurance fees contained within Obamacare. Experts say those companies will pass most of the new fees on to employees through higher premium contributions.
The opinions contained in this column are solely those of the writer.
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