Preexisting Conditions To Cost Every Covered Person Each Year

By Cornelius Nunev


Beginning in 2014, everyone with insurance coverage through an employer will have to give $63 each year to cover the cost of getting insurance for people with preexisting conditions. It's a part of the Affordable Care Act, one of the many costs that law will impose.

Giving every person insurance

It is definitely 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 corporations can no longer exclude those with preexisting conditions. The cash has to come from someplace to help pay for it though.

The additional expenses 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.

Paying for preexisting conditions yearly

Everybody presently insured will have to pay a fee, according to ACA's text, in order to pay for the preexisting problems. Every business that gives insurance to workers will have to pay the fee, and about 190 million people who get insurance through companies will end up having to pay the fee.

If companies pass on the fee to workers, then employees will have to pay $5.25 a month. That may not lead to getting payday loans or change your lifestyle, but it could still hurt. It expenses $63 per insured person per year, according to Salon.com. Businesses will pay higher bills if they are larger and smaller bills if they are lower.

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

Should be called the Robin Hood bill

All told, besides just that $25 billion cost to cover people with preexisting problems, the ACA mandates $700 billion be raised from numerous sources over a decade. Noble as the idea is to get more people covered under health insurance, a lot of Peters have to cover 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. Anybody with insurance can most likely expect to pay more in long term, for everybody else.



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