Though President Barack Obama forecasted health premiums would decrease by an average of $2,500 per family thanks to the Affordable Care Act, insurance providers recently testified before Congress that this won't likely happen.
Speaking before the House Energy and Commerce Committee, representatives from some of the nation's largest health insurance companies testified about added expenses that consumers could see in the months ahead, with the ACA now in place for individuals. The employee benefits provision doesn't go into effect until 2016.
Virginia Rep. Morgan Griffith asked the panel of insurance industry experts whether they anticipated a reduction in premiums for the average family of more than $1,500, asking them to raise their hands if this would happen. No one did.
Fox News reported that while none of the insurance CEOs gave any indications as to what, if any, savings families would receive, industries like the Society of Actuaries have projected double-digit increases in health care spending.
Another side effect of the ACA – according to Mark Pratt, senior vice president of industry trade association America's Health Insurance Plans – is a new tax that insurance companies have to pay.
"We are deeply concerned that this tax is undermining efforts to control costs and provide affordable coverage options," Pratt told the House committee, Fox News reported.
These costs could be passed on to consumers in the form of higher premiums. As it is, many people have yet to pay for their first month's premium. The House Energy and Commerce Committee recently found that two-thirds of individuals who enrolled in the exchanges had paid for their initial coverage, which opponents of the ACA say is what ought to be considered when estimating how many people have enrolled. The U.S. Department of Health and Human Services says 8 million people have selected plans through the state-based and federally facilitated marketplaces.
