Obamacare’s Impact on Florida Insurance

Florida’s insurance commissioner expects rates in the individual market to climb 30% to 40% next year and in the small-group market to increase by 5% to 20%.

In Florida, 11 insurers filed double-digit rate hikes with the state between May 2012 and June 2013. Several of the state’s largest insurers proposed average rate increases for individual policies of between 10% and nearly 16%. Group policy rates are up 2% to 15%. Employers with younger workers may see higher increases than those with older workers because of restrictions on how much age can be factored into premium costs.

Health insurers say Obamacare is driving rates higher because it doesn’t allow them to make as many of the traditional actuarial distinctions between men and women, and young and old, as they did. The insurers’ inability to charge based on traditional measures of risk drives up cost, as do the law’s minimum standards of care and a standard set of benefits that cover pregnancy, prescriptions and hospital care – for everyone.


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