A new report from Milliman, Inc. helps explain how the Affordable Care Act’s (ACA) coverage expansion, new benefits, and market reforms will impact individual market health insurance premiums in 2014. The report highlights how some provisions will increase premiums while others will make health care coverage more affordable for consumers. The focus of this report is to highlight the broad range of changes happening in the marketplace and the wide variation in impact that is likely to occur.
This presentation from Oliver Wyman examines the impact of ACA market reforms on affordability.
Wyman has developed an actuarial model to study the impact of different reform
proposals on the individual and small employer health insurance market. According to this model, if the age band is
compressed to 3:1, premiums for the youngest-healthiest third of individuals
would be 35% higher in Year 1 compared to reform with 5:1 rating bands.