First Peek at Health-Law Cost

From The Wall Street Journal:

Two health-insurance carriers in Vermont are proposing to keep their rates about flat next year when the Obama health-law overhaul takes full effect, a development that experts say is unlikely to be matched in other states where premiums could surge.

Vermont on Monday became the first state to signal how much insurers are seeking to charge when the federal law kicks in.

But because benefits in the state's plans are already relatively close to meeting most of the law's requirements, insurers didn't need to make major changes to the relatively costly policies they already offer.

In contrast, the federal law's requirements that insurers must enroll all customers regardless of their medical history or claims, limit what they pay out of pocket for care, and cover a wide range of benefits could boost insurance costs in other states that have had less stringent rules in place. Subsidies would offset part of potential increases for lower-income consumers.

Vermont is one of only five states that already require insurers to accept all customers. And while Vermonters aren't required to carry health insurance or pay a penalty—something that most Americans will be required to do next year as part of another provision of the Affordable Care Act—only about 9% of the state's residents lack insurance, compared with a 16% average nationwide.