Most insurance companies set their rates in the summer. By this time they can see the claims that are coming in, project potential claims for the rest of the year, and be able to see how their rates lined up with those claims. However this year it seems that insurance companies are taking more than your health into account when it sets prices.
Insurance is the assumption of risk by the insurance companies for the premiums you pay. When you pay your premiums, you expect them to be based on your health, right? That’s not entirely the case. This year insurance companies are pricing the risk of losing certainty in the market.
What does that mean? It means that if insurance companies aren’t sure what subsidies they will be receiving from the government or if those who go without insurance will potentially have to pay a penalty, then they’re going to assume a greater risk and raise premiums accordingly.
When this happens, you pay. And right now it’s becoming obvious that a lack of clear direction from the government is making insurers skittish. So they’re planning on raising your premiums.