Insurance Rates To Increase Under ACA


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Insurance Rates To Increase Under ACA

By Josh Egbert. CREATED Nov 14, 2013

Omaha, NE- New developments Thursday in Affordable Care Act. Nearly 5 million American who got cancellation notices from their health care provider, the White House says they've fixed.

The White House is giving insurance companies the option to keep offering plans that would have otherwise been canceled through 2014. Providers will also have to make clear what the plans do not include and let consumers know what other new options are available in the Federal Exchanges.

One Omaha family did not have their policy canceled, but if they want to keep it, they will have to pay hundreds more a month.

Andrea Kodad says her family was satisfied with their coverage, but her provider sent her a letter saying their policy didn't comply with the Affordable Care Act. Her only options were to be dropped or pay up.

"There are a couple of unfortunate impacts and one is higher rates because insurers had to adjust their policies to make them compliant with the Affordable Care Act." says Bruce Ramge, Director of the Department of Insurance.

Those higher rates are set to kick in January 1st. For some, that increase is hundreds of dollars.

"Our cost went up by 65% as of January 1, 2014." says Kodad.

Kodad was paying $440 a month for her family of four, but then received the letter from Blue Cross Blue Shield of Nebraska, saying her rates were increasing.

"Our co-insurance actually went up from 15% to 50%, a huge jump, with a new monthly cost of $726." explains Kodad.

Kodad says her current insurance covered what the family needed. The doctors her two children go to are in her network. Now, she says, she's being forced to purchase coverage she doesn't need.

"Now we have inpatient substance abuse care. We have maternity, which I've already made the choice that I'm done, I have two children, I'm done with my family." says Kodad.

Substance abuse care and maternity were added to the essential list of heath coverage under ACA.

Nebraska Insurance Commissioner Bruce Ramge says the additional coverage could affect numerous Nebraskans.

"With that adjustment with the more coverage requirements that impacted rates so many people are disappointed that they will be subjected to higher insurance rates." says Ramge.

Kodad says as of right now, her family is planning to stay with their coverage and pay the new premium. With the changes made Thursday, Kodad doesn't know if they can keep their current plan, since they technically weren't dropped.