Question: I appreciate the Covered California choices for those in the “individual market” but I have concerns about the effect of the ACA on “large group” employer-based insurance premium rates. At work we have two choices, Kaiser or Anthem. We are hearing that premiums for next November could go up as high as 25%. Is this true and if so why? Wouldn’t more people in the insurance pools drive costs down? This rate increase rumor sounds counter-intuitive to me.

Answer: The rumors of huge rate increases in the individual market proved to be wrong. Perhaps your group rates won’t go up at all. Fewer uninsured will have a downward pressure in rates but it will take some time. The upward pressure on rates from the ACA in the large group market comes from requirements for more comprehensive coverage.