According to a new study released by bipartisan organization Center Forward, premiums for health insurance could rise as much as 40 percent after the full implementation of the Patient Protection and Affordable Care Act (PPACA). On average, the cost of individual premiums are expected to increase between 25 percent and 40 percent and small market group premiums are estimated to increase by 6 percent to 12 percent. As has been established in the past, the brunt of the burden for these increases will be shouldered by healthy young men while older and less healthy people will pay much less.
However, some states will bear less of an impact from the PPACA than others. For example, in states such as New Jersey where PPACA provisions have already led to more highly regulated insurance, some premiums have actually dropped by 25 percent. Other states with relatively little regulation could see enormous rate increases of between 50 and 60 percent. This is largely due to the fact that many individuals in these states will be forced to transition from low-coverage policies to higher-coverage policies as a result of PPACA-mandated coverage minimums.
But the report also states that most people who receive the largest premium increases should receive federal subsidies to help absorb the impact. In fact, the study found that between 40 and 60 percent of people participating in the individual market will qualify for subsidies.