Health Insurance Rates

As part of the Affordable Care Act, the federal disposal will require alone states to review, and approve or deny, all premium tempo changes implemented by health caution redress plans. The California legislature is currently drafting its rate review guidelines. These guidelines are expected to be similar to the service line standards established by the United States Department of Health and gentleman Services (DHS). However, the DHSs rate review standards do not take into consideration health worry costs. This means that health insurance plans in California will be command from modifying premiums based on how much it costs to cover enrollee care. victorious that into consideration, we should analyze if Californias health insurance industriousness will go insolvent if rate review standards send away the impact of health care costs.

Sixty-five percent of operative families receive their health insurance through employer-sponsored plans. During the last decade, their premiums bring in increased by 104%. On the other hand, during that same conviction period, health care costs associated with these premiums increased by 95%. In 2009 annual health care spending in the U.S. surpassed $2.5 trillion dollars, accounting for 17% of the Gross Domestic production (GDP).



The health insurance industry was responsible for covering 54% of that spending. The Congressional Budget Office estimates by 2018 that U.S. health care spending will surpass $4.2 trillion dollars. In California, health care spending has increased 225% in the last 2 decades. According to the Kaiser Family Foundation, the largest factors increasing health care costs in the United States are engineering and consumption; two factors the insurance industry has little ability to control.

Peter Orszag, the former manager for the Office of Management and Budget, testified to congress in 2009 that advances in technology will account for half of all future increases in health care spending. According to Mr. Orszag,...If you want to get a full essay, order it on our website: Ordercustompaper.com



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