Could The Affordable Health Care Act Lower Car Insurance Premiums?

Could The Affordable Health Care Act Lower Car Insurance Premiums?

affordable health care act

If you ask a group of people about what the term “Obamacare” means to them you will most likely get a variety of reactions because, most American’s either love President Obama’s Affordable Health Care Act or they hate it with a passion.

What’s interesting about the Affordable Health Care Act is that it could ultimately end up lowering car insurance premiums across the United States since insurers will have to pay out fewer payments for people who got into car accidents and didn’t have any medical coverage.

Consequences of Driving Without Medical Insurance

In the past drivers who decided to live without health insurance typically taxed the system to its limits.

If a driver who didn’t have medical insurance was involved in a car accident that required them to have medical care, hospitalization and long term leave from their jobs they could have confidence that their car insurance and even workers compensation would help to cover their costs.

Thanks to a new RAND study we know that the Affordable Health Care Act is expected to help lower costs across the board including workers compensation because, there will be fewer drivers without health insurance on the roads and few car accident victims taxing the system.

$35 BILLION Paid Out To Cover Accident Victims

Did you know that $35 billion dollars was paid out in 2007 to cover the medical costs of car accident victims?

This was about two percent of health care costs for 2007 and insurers are hoping that this will change since mostly all drivers will be covered under “Obamacare” and this should ultimately drive costs down across the board.

The Affordable Health Care Act may have its “benefits” for the insurance industry but some insurance industry experts are also seeing the reverse consequences of what else could happen thanks to Obamacare like a rise in malpractice claims since there will be more people using the Health Care System.

As of today the positive and negative effects of Obamacare are still mostly unknowns because, this law hasn’t been active for long yet so only time will really tell the true effects of Obamacare.

What are your thoughts on the Affordable Health Care Act? Feel free to leave us a comment below.

For an affordable car insurance quote contact the Farnsworth Agency today by clicking here or calling us at (541) 318-8835. 

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