Obamacare could raise insurance rates in Alabama by 60 percent
A new study released by the Society of Actuaries on the impact of President Barack Obama’s Affordable Care Act on states brings good news and bad news for Alabama.
First, the good news. The study predicts that the number of uninsured Alabamians could fall from from the current rate of 14.7 percent to 4.9 percent assuming the state expands Medicaid coverage. Governor Robert Bentley has repeatedly stated that he has no intention of expanding coverage, so it remains to be seen if those reductions will be realized.
The bad news, according to the impact study, is that the influx of currently uninsured people will drive the cost of non-group insurance policies up by 60.3 percent for Alabamians. The only states showing a higher increase were California, Idaho, Indiana and Maryland, with Indiana leading the way with a 68 percent jump in cost.
To be sure, not everyone is in agreement with the figures produced in the study. Obamacare supporters are quick to point out that actuaries’ job is to predict costs so that insurance companies can plan ahead and make sure premiums cover those costs. Detractors of the study believe the SOA is overstating the numbers to err on the side of caution.