ACA Reform and its Impact on Individuals and Employers – The Unintended Consequences

The Affordable Care Act (ACA) was passed with the intent of making health insurance affordable and easily attainable for anyone, whether as an individual or for an employer providing group benefits.

To make insurance more attainable, the law forced insurance companies to accept all individuals and all small employers (less than 50 employees) without allowing for medical underwriting.

In the individual market, this “guaranteed issue” of coverage means all individuals of the same age and gender are charged the same premium regardless of any underlying health conditions they might have. Plus, everyone would have immediate coverage for any pre-existing conditions they might have, even if they have never had health coverage before. While the goal of getting people access to health care is laudable, this insurance mandate had a very predictable outcome – it caused an explosion in the cost of individual health insurance.

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