The high volume of sign-ups spurred by the Affordable Care Act (ACA) is driving up the cost of health care insurance premiums in Florida.
A recent announcement by the Florida Office or Insurance Regulation revealed that plans are set to increase by an average of 19%, which is a hundredfold spike over last year’s average increase rate of 9.5%.
The average is calculated from a sampling of 15 health insurance companies, including Humana, Molina Healthcare, Cigna, Aetna
and AvMed. The said companies submitted rate filings to the Florida regulator in May. Of the 15, eight sell insurance on the ACA’s health care exchange, while the rest provide policies outside the exchange.
Still, the expected rate increase should not be cause for alarm for Florida residents.
“Consumers in Florida will continue to have affordable Health Insurance Marketplace options next year,” said Jonathan Gold
, a spokesman for the Department of Health and Human Services, told reporters. “Headline rate changes do not reflect what these consumers actually pay because tax credits reduce the cost of coverage below the sticker price and shopping helps consumers find the best deal.”
The ACA, also known as Obamacare, is President Barack Obama’s legacy legislation, which aims to provide universal health care to Americans by making insurance available at competitive prices through online exchanges.