Health Insurers Struggle to Profit From ACA Plans

via Wall Street Journal

The Affordable Care Act’s third open enrollment season got under way, with a new array of health plans that show how the law’s influence is starting to transform the insurance industry.

Sunday’s kickoff appeared to go relatively smoothly, with little evidence of technical glitches at HealthCare.gov as consumers started to shop for coverage that will take effect in 2016. But this enrollment season will be a challenge as the Obama administration and insurers try to lure holdouts who haven’t previously signed up for ACA coverage, even as premiums for many products appear set to rise sharply. Premiums for a type of plan that is closely watched as a signal of consumer costs—the second-lowest-priced insurance product in the law’s “silver” metal tier—will increase 7.5% on average across the roughly three dozen states that rely on the HealthCare.gov marketplace, according to the administration.

Read the full article here

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About thebenefitblog

Eric is a Producer at Lockton Insurance Brokers, Inc., the world’s largest privately held commercial broker. Eric has over 23 years of experience in the insurance industry and has spent the last 11 years with Lockton. Eric specializes in Health & Welfare Benefits, Retirement Planning, and Executive Benefits. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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