USA Today Turns to Joel Ario on Health Insurance Premium Pricing
"Market, Insurers Will Keep Premiums Low, Analysts Say"
USA Today
May 21, 2013 - USA Today turned to Manatt's Joel Ario, a managing director with Manatt Health Solutions, for insight into the different factors that will help keep health insurance premiums lower as the 2010 healthcare law takes effect.
As reported by USA Today, market forces and an impetus to attract younger, healthier people into the insurance market will help lower premiums. Starting January 1, Americans will be required to buy insurance or pay a fine. Industry experts note that if insurance companies price premiums too high, young people won't buy insurance, which will hurt the companies. The changing health environment will offer a general industry push to keep premiums low to attract customers.
Individual premiums over the past two years in Massachusetts have dropped 12%, said Ario, former director of health insurance exchanges under President Obama.
"I think that's what most people (think) will happen in this market, too," he said, referring to the new federal and state exchanges. "The single risk pool will be more stable than ever because it will be based on the whole pool's experience."
Read the article here.