Tuesday, April 8, 2014

Preexisting Conditions To Cost Every Insured Person $63 Per Year

By Cornelius Nunev


Beginning in 2014, every person with insurance coverage through a company will have to hand over $63 each year to cover the cost of getting insurance for people with preexisting problems. It's a part of the Affordable Care Act, one of the many expenses that law will impose.

Tax to pay for preexisting problems takes effect in 2014

It is certainly true that people with preexisting problems, or preexisting medical problems, most likely should be able get insurance coverage. If they're willing to pay premiums, why shouldn't they be allowed to have it?

Due to the Affordable Care Act that was passed by the Obama administration, insurance businesses can no longer exclude those with preexisting problems. The cash has to come from somewhere to help pay for it though.

The extra costs on insurance companies means the people left holding the check are those that already have insurance and the employers who purchase it, according to CBS. It doesn't kick in until 2014, but $25 billion has to be raised between 2014 and 2017.

Fee to be issues

Every person presently insured will have to pay a fee, according to ACA's text, to be able to pay for the preexisting conditions. Every business that gives insurance to workers will have to pay the fee, and about 190 million people who get insurance through employers will end up having to pay the fee.

The fee is going to be passed to businesses on a yearly basis of $63 per insured person. That means the bill is higher for large businesses and not so bad for small businesses. The fee will likely be passed down to workers at an extra $5.25 a month to get it all paid. It may not cause you to run for payday loans to pay the rent, but it could seriously impact people on tight budgets.

In 2017, the fee will phase out totally, and it will drop each year starting at $63 per person in 2014 to $50 the next year. The fee keeps going down.

Stealing money to give to others

All told, aside from just that $25 billion cost to cover people with preexisting conditions, the ACA mandates $700 billion be elevated from several sources over a decade. Noble as the idea is to get more people covered under health insurance, a ton of Peters have to pay for Paul, so to speak.

As a result of the health care law, premiums have been starting to slowly go up. For instance, According to the Washington Post, HR consultancy Mercer found in a recent survey this year that 12 percent of companies with at least 500 workers have elevated premiums on health insurance, compared to 10 percent last year. Anyone with insurance can probably be ready to pay more in long term, for every person else.



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