What factors caused the increase costs?
In addition to the normal "trend" costs, the following requirements of the Affordable Care Act have significant impact on the insurance costs:
· Guaranteed issuance
· Community rating (insurance rates are basically the same regardless of occupation, age or health conditions)
· Essential health benefits (mandated coverages)
· Minimum loss ratios (insurance companies are required to pay out 80 percent of all premiums collected in claims)
· Taxes and fees on insurance companies.