What factors caused the increase costs?

Published 08/06/2013 02:32 PM   |    Updated 10/27/2015 11:57 AM
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.

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