The cost of car insurance could rise to $1,000 per month if the US Supreme Court rules against a lower court ruling that the Obama administration was wrongly enforcing the federal rules against insurers charging higher premiums to those who are healthy.
Key points:Lawyers for the American Medical Association say the lower court’s ruling is a “slap in the face” to millions of Americans with pre-existing conditions and that insurers should not be allowed to continue charging higher ratesThe court ruling could open the door to higher premiums for those with pre, pre-mature, preexisting conditionsThe ruling could lead to insurers charging more for policies that include people with premature or pre-natal conditionsThe Obama administration is arguing the higher premiums could have an adverse effect on insurers who already have high premiums.
Insurers would be allowed, for example, to charge higher premiums if the person was underinsured, and for those who had a history of pre-injury complications.
The court, in a 5-4 ruling on Tuesday, said the Obama Administration’s regulations against insurers offering policies that did not cover certain types of health conditions, which the administration has called pre-insurance, were not legally valid.
The rule was put in place to reduce costs and improve the health of the insured population.
The ruling also would open the way for insurers to charge more to people with preexisting conditions.
This would include those who have pre-eminent chronic conditions such as diabetes, high blood pressure, heart disease or stroke.
The ruling would allow insurers to set premiums for policies covering such conditions as those with severe preexistent conditions, or people with other pre-diseases such as cancer.
The American Medical Assn.
and other groups are suing to overturn the lower courts ruling, saying that insurers were violating the federal pre-established rules for covering health-related expenses.
The insurers argue that the government was acting in bad faith by making the rule without Congress’s consent.
In a brief to the court, the American Association for Insurance Commissioners (AACI), which represents the nation’s insurance industry, argued that the Supreme Court decision was a “serious blow to millions and millions of American families with preeminent, preterm, preinjury, or other preterm conditions who are being priced out of the insurance market.”
Insurers are arguing that they are not discriminating against people with these conditions because the regulations are “simply not true”.
The ruling is the latest in a string of high-profile challenges to the Obama rule, including the Supreme of India case in March, which set a precedent for future challenges to Obamacare.
The new case, brought by the American Lung Association, which represents health-care professionals, has drawn the attention of the White House, the Department of Health and Human Services, and the Department, of Justice.
“The Supreme Court’s decision today is a slap in the faced to millions who are already being priced into the insurance marketplace and, ultimately, to millions more who need it,” AIA President and CEO Jim Bunning said in a statement.
“The court’s decision makes it clear that the pre-emptive action taken by the administration, as well as the regulations promulgated by the Trump administration, violate the constitutional prohibition on Congress acting in concert with the federal government to regulate interstate commerce.”
Insurance firms have already been taking steps to lower premiums.
In December, American National Mortgage Association (ANMAA) reported a drop in premiums for the first time in three years, as demand for insurance in the market dropped and the number of insured people who qualify for the federal subsidy program rose.
The Trump administration has also been cracking down on insurers that do not meet the requirements of the Affordable Care Act, and it is pushing to change the rule for states.
Under the rule, insurers would be required to cover people with “substantial pre-existing medical conditions” who would be able to pay premiums, but not people with serious conditions.
The White House says the administration is taking a “proactive approach” to lowering premiums for people with conditions that will prevent them from getting coverage.
But the decision could open a new front in the battle between insurance companies and the federal health system, as it could force insurers to compete against one another to attract new customers.
The ACA was signed into law by President Barack Obama in 2010 and required insurance companies to cover most people with insurance.
Insurers were supposed to offer plans that covered essential health benefits, including maternity, prescription drugs, prescription eyeglasses, prescription glasses and preventive care.
The government has made changes to the law to help lower premiums for some people with high deductibles, but has not fully implemented those changes for others.
For many, those changes have been too little too late, with the cost of premiums ballooning.