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Insurance commissioners propose ideas to minimize ‘rate shock’
Modern Healthcare

A group of insurance commissioners is sharing ways states can minimize the likelihood of large premium increases, particularly for young adults, as major provisions of the Patient Protection and Affordable Care Act go into effect in 2014.

Several provisions of the law affecting the individual and small-group markets—such as essential health benefits, limits on age-rating factors, guaranteed issue and single risk-pool ratings—could make claims costs spike for insurers, leading to premium hikes, according to a draft paper titled “Rate Increase Mitigation Strategies” presented today at the National Association of Insurance Commissioners’ annual spring meeting in Houston.