It’s no secret that the Affordable Care Act (ACA) has been a controversial issue.  Advocates from both sides of the aisle are attempting to explain how the new legislation is going to help or hurt you, your family and/or your business.  One consequence of the ACA that is just starting to gain much attention is the federal law’s impact on insurance premiums.  

Usually when we think of insurance premiums, we cringe, because they are an already high but necessary expense.  Well, buckle up, because 2014 is going to be a bumpy ride full of changing benefits and premium increases.  While the price you pay for insurance is generally based on where people live, health condition and age, we know one thing…premiums will increase.

But we should understand something before we get fired up.  This is not something that employers or insurance companies want.  They don’t make more money off of these increases.  It is simple math…the ACA mandates that more people have health insurance.  In order for the insurance companies to provide new services to those without coverage and to expand services for those with existing coverage, they must increase premiums to be able to afford all the new coverage. 

What does this mean if I am about to purchase my own plan?  Well, there is a good chance that your coverage is going to expand, but that comes with a price.  On top of that, there will be a new tax on health insurance set to take effect in 2014. This affects small business employers as well.  Some tax credits will be available to employers with fewer than 25 people who have low wage employees. 

The purpose of today’s post is not to point the finger, but to keep everyone from pointing fingers at Virginia employers or providers.  This is not something that employers want to do, nor the insurance companies, but it is a consequence of implementing the new legislation.

You can learn more about how the changes might impact you by going to http://www.timeforaffordability.org