Health care reform is now the law of the land, and here are some of the upcoming consequences for people who purchase their own individual health insurance
On Sept 23, there are new mandates that will drive health insurance costs higher.
-New plans will no longer have lifetime limits
-Children under age 19 will no longer be subjective to any exclusions based on pre-existing conditions
-Dependent adult children up to age 26 can stay on their parents’ plan
-New plans must cover certain preventive services without copays or deductibles
All of these changes will drive costs up, so we are expecting to see some big rate increases coming – this year and in coming years. All the misguided people who think health insurance is about to be free will be howling in protest to the politicians. The politicians who passed this incredibly bad bill will be howling in protest as well, claiming the insurance companies are once again taking advantage of the public. And there will be calls to “do more” by those oblivious to the irony of it all.
The only hope is that high deductible plans will remain available. As rates continue to soar, more and more people will flock to health savings accounts and high deductible plans, and consumer-driven solutions may still stand a chance at stopping the runaway health care inflation.
For more details and a timeline of what’s going to happen, you can read the last issue of Maximize Your HSA.