People With Insurance To Pay $63 Per Year For Those With Preexisting Conditions

By Cornelius Nunev


Beginning in 2014, everybody with insurance coverage through a company will have to hand over $63 each year to cover the price 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 insurance to those with preexisting conditions

No matter what a person's situation, people with preexisting problems should always be able to get insurance coverage. It should be given to anyone who is willing to pay premiums to get it. Insurance is really important to a person's health.

It is not inexpensive to add somebody with preexisting conditions to insurance though. In fact, it is really costly because it is known a ton of medical treatment and coverage will be needed. The cash has to come from someplace now that the Affordable Care Act needs insurance agencies give coverage to those with preexisting conditions, because of the Obama administration.

People who already have insurance and companies purchasing it are now going to end up paying the extra costs, according to CBS. Between 2014 and 2017, $25 billion needs to be elevated somehow, though the requirement does not start until 2014.

Annual cost of $63

Buried in the ACA's text is a fee that has to be imposed on everyone that presently is insured, to pay for those with preexisting conditions. The fee is going to be assessed on every business that provides insurance for its employees, much of which will likely be passed on to the roughly 190 million people who get insurance through their employers.

The fee is going to be passed to businesses on a yearly basis of $63 per insured person. That means the bill is higher for large corporations and not so bad for small businesses. The fee will likely be passed down to workers at an extra $5.25 a month to get it all paid. It may not trigger you to run for payday loans to pay the rent, but it could seriously impact people on tight budgets.

On the bright side, the fee declines every year after that, dropping from $63 per head in 2014 to $50 the next year, until it phases out completely in 2017.

Taking a little to give a little

It seems like a really nice idea to help get health insurance for other people, but lots of people are likely to have to put even more in if every person is going to be able to get coverage. The ACA demands that another $700 billion be raised in the next ten years on top of the $25 billion for those with preexisting conditions.

According to the Washington Post, health insurance premiums are increasing everywhere due to the health care law. People can be ready to pay a lot more. HR consultancy Mercer did a survey that found 10 percent of corporations with over 500 workers increased health insurance premiums last year. This year, that number was up to 12 percent of companies.




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