Tag: Blue Cross Blue Shield of Alabama

Insurance Premiums Rising As A Result of Obamacare

Yesterday, The Heritage Foundation published this piece about how Obamacare would simultaneously cause insurance premiums to rise and prevent companies from raising them.

The Heritage article is extremely relevant given this piece from Monday’s Birmingham News:

In filings with the Alabama Department of Insurance, Blue Cross Blue Shield of Alabama and VIVA Health reported they already have increased some of their premiums for 2011. Some of the increases are directly related to the federal changes, some are not. And they warn that more increases are on the horizon.

The changes in Alabama, while slight compared to some changes in other parts of the country, are being monitored by federal regulators who say the new Affordable Care Act is not an excuse for companies to inflict massive cost increases on consumers…
…A spokeswoman said most of the increase is directly related to the new health care law’s mandate to eliminate the annual prescription drug maximum. VIVA had set its maximum at $3,000 on plans for companies with fewer than 50 employees, as a way to make them more affordable.