Rate shock: In California, Obamacare to increase individual health insurance premiums by 64 percent to 146 percent
By Kim Magdalein
A recent Forbes article reads:
One of the most serious flaws with Obamacare is that its blizzard of regulations and mandates drives up the cost of insurance for people who buy it on their own.
This problem will be especially acute when the law’s main provisions kick in on January 1, 2014, leading many to worry about health insurance “rate shock.”
Last week, the state of California claimed that its version of Obamacare’s health insurance exchange would actually reduce premiums. “These rates are way below the worst-case gloom-and-doom scenarios we have heard,” boasted Peter Lee, executive director of the California exchange. But the data that Lee released tells a different story: Obamacare, in fact, will increase individual-market premiums in California by as much as 146 percent.
California is usually a harbinger for the rest of the country. If premiums increase by such huge figures, the problems for our clients will certainly strain their financial futures. These types of articles should alert all producers of the need for education and client planning. When dealing with the costs of long-term care, nursing home costs will most certainly be affected. Seminars with a vision toward proper planning for long-term care is a very good topic for many seniors.