Alabamians feel effects of Obamacare

Less than a few days after open enrollment began in the federally–run health insurance marketplaces, Alabamians got a sneak peek at what The Affordable Care Act will mean for their premiums.

As of Oct. 29, Blue Cross and Blue Shield of Alabama had notified 87,000 policyholders that their current policies would be forced to change due to new requirements imposed by the ACA.

Nationally, NBC News reported that 50-75 percent of Americans who buy their own insurance will receive a cancellation notice because of “Obamacare” as it continues to be implemented.

In Alabama, all Blue Cross and Blue Shield individual and small group plans were outlawed through Obamacare.

Those who were notified in early October were told their current plan would change as of Dec. 31, 2013.

The information sent out also showed what a new premium would be for a comparable ACA-approved plan and some of those premiums more than doubled.

Policyholders do have the option to shop around for another plan with more affordable premiums, though it is possible that would also cause a reduction in coverage.

Most notably, the ACA nullified the “Total Blue” plan, which was one of BCBS’s most popular polices for individuals.

Insurance companies are saying they have to raise premiums because medical underwriting, which allows insurers to calculate premiums based on the health of those applying for coverage, is no longer allowed under Obamacare.

Now plans are being determined with no medical history, which makes it difficult to determine what an insurance provider might have to pay out in claims.

To make sure these costs are covered, premiums for policyholders have gone up across the board in most cases.

According to an email update from BCBS, each person on an individual insurance policy will now be rated based on age, whether he or she uses tobacco and the county in which the policyholder lives.

For the small group market, this means each person on an employer´s plan will now be rated based on age and the employer´s principle business address.

Small group rates will also vary based on the age of individual members.

According to the BCBS website, a 30-year old without children could receive coverage for $146 a month through the total blue policy in 2013.

Under the Blue Access Gold plan, a comparable plan meeting Obamacare’s standards, the same individual would pay $271 a month.

Alabama is also among a handful of states with very few options for health insurance providers, which some critics say is the real reason for the rate hikes expected in 2014.

According to WebMD, a 50-year-old individual in Huntsville, where only BCBS and Humana offer plans through the federal government's online exchange, would pay $352 a month for a medium-level "silver" policy.

In Nashville, Tenn., where four insurers compete, the least expensive silver policy costs $253, which is about 28 percent less.

None of the prices for polices take into account the federal tax credit subsidy many could receive if they qualify for government assistance with their healthcare costs.

Family plans have also seen some sharp increases, as insurers are now required to calculate family members over the age of 20 as separate individuals.

However, every plan design and rate structure BCBS has is subject to approval from the Alabama Insurance Department each year, at which time the company is required to justify any change in policy rates.

For more information on the rates offered through Blue Cross and Blue Shield, go to the website at Bcbsal.org.