California's insurance commissioner says splitting the state into six zones would drive up premiums as much as 23% next year.
, informs Los Angeles Times.An idea of dividing California map into 6 regions for rating health insurance services as well as some other important questions is going to be discussed by heads of the state on Wednesday.
The thing is that such a plan can replace another, 18-regional dividing which was expected to drive the premiums up to 8% only and raise costs of health insurance policy for citizens of the state up to 23%.
A lot of consumer advocates and healthcare experts express their concern about the new perspective very much. The thing is that next January all Americans will be obliged to purchase health insurance policy. Otherwise, they will pay penalties. A new California project will decrease the possibilities of consumers to choose the rates of health care policy according with their age. This factor can make the cost of a policy unaffordable for a lot of citizens.
The main problem that leaders of the state face nowadays is to establish a new rating map and to determine the role of geographical location of each zone in changing the costs.
It's important to get it right as well so we can minimize any rate shock,
Insurance Commissioner Dave Jones who also opposites a six zone project.Besides, a spokeswoman of the state who is also a chairman of Health Committee reminds about federal rules which recommend dividing the state no more than for seven rating zones.
Anyway, it goes clear that health insurance as well as some other insurance products will be more expensive very soon.