Wednesday, March 19, 2014

Health Insurance Premiums To Rise...

by: Les Carpenter
Rational Nation USA
Purveyor of Truth



ObamaCare, also known as the Affordable Care Act, a misnomer if ever there was one, is destined to become even more unaffordable for many people in the near future. Setting the miserably inept roll out aside, and the President's assurances that "if you like your plan you and keep your plan and "if you like your doctor you can keep your doctor" The Hill is reporting that "O-Care premiums are set to skyrocket."

It is becoming more evident that the concerns expressed by the skeptics, and indeed there were and remain many, are coming to pass. With premiums that may triple in some regions can anyone blame people for questioning the President's integrity at this juncture?

Republican's have been looking for a major issue that could be a real game changer for the party in the 2016 presidential election. Hitting people hard in their pocketbooks usually has a significant or even huge impact. Certainly this news has the Democrats sweating.

Health industry officials say ObamaCare-related premiums will double in some parts of the country, countering claims recently made by the administration.

The expected rate hikes will be announced in the coming months amid an intense election year, when control of the Senate is up for grabs. The sticker shock would likely bolster the GOP’s prospects in November and hamper ObamaCare insurance enrollment efforts in 2015.

The industry complaints come less than a week after Health and Human Services (HHS) Secretary Kathleen Sebelius sought to downplay concerns about rising premiums in the healthcare sector. She told lawmakers rates would increase in 2015 but grow more slowly than in the past.

“The increases are far less significant than what they were prior to the Affordable Care Act,” the secretary said in testimony before the House Ways and Means Committee.

Her comment baffled insurance officials, who said it runs counter to the industry’s consensus about next year.

“It’s pretty shortsighted because I think everybody knows that the way the exchange has rolled out … is going to lead to higher costs,” said one senior insurance executive who requested anonymity.

The insurance official, who hails from a populous swing state, said his company expects to triple its rates next year on the ObamaCare exchange.

The hikes are expected to vary substantially by region, state and carrier.

Areas of the country with older, sicker or smaller populations are likely to be hit hardest, while others might not see substantial increases at all {emphasis mine}.

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Much will depend on how firms are coping with the healthcare law’s raft of new fees and regulatory restrictions, according to another industry official.

After this story was published, the administration pointed to some independent analyses that have cast doubt on whether the current mix of enrollees will lead to premium hikes.

ObamaCare also includes several programs designed to ease the transition and stave off premium increases. Reinsurance, for example, will send payments to insurers to help shoulder the cost of covering sick patients.

But insurance officials are quick to emphasize that any spikes would be a consequence of delays and changes in ObamaCare’s rollout.

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Federal health officials have also limited the amount of money the government can spend to help insurers cover the cost of new, sick patients.

Perhaps most important, insurers have been disappointed that young people only make up about one-quarter of the enrollees in plans through the insurance exchanges, according to public figures that were released earlier this year...

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These factors will have the unintended consequence of raising rates, sources said.

“We’re exasperated,” said the senior insurance official. “All of these major delays on very significant portions of the law are going to change what it’s going to cost.”

“My gut tells me that, for some people, these increases will be significant,” said Bill Hoagland, a former executive at Cigna and current senior vice president at the Bipartisan Policy Center.

Hoagland said Sebelius was seeking to “soften up the American public” to the likelihood that premiums will rise, despite promises to the contrary.

It sure is looking as if the much ballyhooed Democratic insurance reform plan, which is what the ACA really is, is going to be a bitter pill to swallow for millions.

You can continue reading the story BELOW THE FOLD.

Via: Memeorandum

21 comments:

  1. What's an "Obamacare related premium"?

    Is there something in the act which sets premiums or is the problem that there
    is nothing in the act to keep the invisible hand from picking your pocket?

    It is a shame that America is taking so long to get rid of for profit insurers and their unnecessary vigorish.

    ReplyDelete
  2. So, what you are really saying is insurance companies should be non profit. Now you know that is not going to happen and if too highly regulated by the hand of big brother government insurers would stop offerimg health insurance all together

    Thank you for highlighting the intent of ObamaCare... to push the nation to the progressives dream of a Cuban or Canadian single payer system.

    ReplyDelete
    Replies
    1. What value do for profit insurers offer especially considering they have a monopoly exemption.
      How do insurer profits provide health care or maybe that isn't the object?

      Delete
    2. Once again a progressive refusing acknowledge the true push of the Obama administration. Integrity is no more prevalent among progressives than it is among consevatives.

      Delete
  3. While I'm not inexorably opposed to Obama's overall approach to this (mandates, etc.), the dude and his party made 2 absolutely fatal errors, in my opinion; a) carving out so many exemptions (cronyism at its worst) as to make it virtually useless (and possibly harmful; the death spiral, etc.) and b) continuing even more so this idiotic third-party payer system in which people do not shop around and providers get subsidized up the poop-shoot. The mandate SHOULD have been for personal health savings accounts and high deductible catastrophic policies.......Oh, and I just thought of a third one; all of these ridiculous coverage mandates in which post menopausal women have to have maternity coverage, Mormons who've never had a drink in their life have drug and alcohol rehab coverage, etc.. That one makes zero sense, too.

    ReplyDelete
  4. "“My gut tells me that, for some people, these increases will be significant,” said Bill Hoagland, a former executive at Cigna and current senior vice president at the Bipartisan Policy Center."
    He ought to know: he's raised mine every year, long before there was an ACA to blame!

    ReplyDelete
  5. The administration and the Dems should take this issue head-on and go straight for the throats of the insurance industry. Show the American people who and what they are really pitted against here - and it ain't Obama or Obamacare. I hope the Dems paint the GOP as going right along with the insurance scumbags. Let the GOP defend this sleazy pseudo-sector.

    JMJ

    ReplyDelete
    Replies
    1. Jersey: As a major, meaningful, and real reform, lets get rid of the entirely unnecessary regulations that prevent insurance companies from competing across state lines. This lowers costs, improves service, and takes a bite out of the profits of protected insurance monopolies. Many conservatives support this idea, and it is the opposite of "going along with insurance scumbags" without the fascistic jackboot of government getting bigger.

      Delete
  6. jmj, the next comment will be yours. But I want to first comment that your constant reference to, and obsession with "conservative and or republican sleaze" says so much more about you than it does them. But please continue, it will ultimately do more to dismantle the hypocrisy than reasonable and rational libertarians and conservatives ever could.

    ReplyDelete
    Replies
    1. My proceeding comment is in response to jmj's sleazy 7:57 PM.

      Delete
    2. Les, the health insurance industry is nothing but a hedge against cost and investment scheme for big employers and the wealthy. Why you libertarians support this sleazy "industry" is beyond me.

      JMJ

      Delete
  7. Ducky, if non-profit insurers are the solution, why aren't the existing non-profits undercutting the for-profit insurers rates and picking up their customer base? Shouldn't the non-profits be able to charge less and grab a larger market share? Or is there more to it than just price? For example: Only 2 of the 9 NY ACA plans will permit you to go to Sloan Kettering if you get cancer.

    http://www.sanduskyregister.com/article/5442396

    ReplyDelete
  8. If I may answer, Ducky; Finn, because real actual useful health insurance is not a profitable enterprise, we don't know because the states rig the rules for the insurers, yes it's more than about price, and no single facility can handle millions and millions of people.

    JMJ

    ReplyDelete
  9. .

    "Health Insurance Premiums To Rise... "

    Ain't USA capitalism great! Well let's hear it for _private_ 'for profit' international insurance corporations making a killing in the monopolized market.

    You may gleefully wish this to cause trouble for the people of USA. It will not change the fact that USA insurance markets are owned and operated for the benefit of the _private_ 'for profit' international insurance corporations. You clearly want this to help the Republican'T Party for political purposes. Not sure it will.

    Agree with JMJ's "The administration and the Dems should take this issue head-on and go straight for the throats of the insurance industry. Show the American people who and what they are really pitted against here - and it ain't Obama or Obamacare. I hope the Dems paint the GOP as going right along with the insurance scumbags. Let the GOP defend this sleazy pseudo-sector."

    Duckys Here

    "It is a shame that America is taking so long to get rid of for profit insurers and their unnecessary vigorish." - Agree

    This could be a winner for Democratic Party in 2014.

    Ema Nymton
    ~@:o?
    .

    ReplyDelete
    Replies
    1. Your hatred for America and American legitimate businesses has no limits Ema..

      You and jmj make a good couple, you both have spent so much time in your imaginary sleaze world your eyesight and brains have become quite muddled me thinks

      As for 2014, we'll just have to wait and see, but it ain't looking good for the democrap liars at all.

      Gee Ema and jmj, we can all play this rhetorical sleaze game you both love so much.

      Delete
    2. RN said: "Your hatred for America and American legitimate businesses has no limits Ema.."

      Exactly. No limits. When you get right down to it, she has a hatred for Americans and their livelihoods.

      Delete
  10. Lets see, what factual evidence does this piece provide to back up its assertion that insurance costs for Obamacare will dramatically increase next year? None.

    We do know that health insurance inflation has dropped dramatically to 3.3% this year, which is the lowest increase in a decade. Thus rising health insurance costs have been something we have faced for well over a decade.

    Even with the trend to shift more costs to the employee, where employee costs for healthcare have risen over 150% in the last decade and over 13% this last year, we still are constantly dealing with a broken healthcare system.

    No one knows exactly what will effect premiums next year because we have no idea, at this point, what medical claims will be incurred with the infusion of all these new (over 5 million) individuals with insurance for the first time will be.

    It would seem that by dramatically increasing the number of healthcare consumers all of our costs would drop, because you are increasing the demand for healthcare...but that is way too capitalistic for our non capitalistic healthcare system.

    But we do love information that reinforces our preconceived notions don't we? Why question this information if it supports your preconceived cynicalism?

    As far as Will and his "healthcare savings account" argument goes; that option has been around for over 15 years and it was a flop.

    In regards to his complaint about policies that mandate coverage for maternal care and or drug and alcohol treatment...that has been the standard for well over 25 years for every insurance policy. Every policy offered via an employer covers those two options whether or not you need it. You never had the option to carve out coverage.

    ReplyDelete
  11. "But we do love information that reinforces our preconceived notions don't we?"

    No TAO, "we" don't.

    "As far as Will and his "healthcare savings account" argument goes; that option has been around for over 15 years and it was a flop."

    Only because people have been conditioned since FDR to accept government intrusion into their lives on the belief government will improve their quality of life and increase their security. True only to a limited level.

    It is, unfortunately true that most people will not make provisions for healthcare insurance unless offered by their company or the government forces them to. unless they are relatively well off.

    "In regards to his complaint about policies that mandate coverage for maternal care and or drug and alcohol treatment...that has been the standard for well over 25 years for every insurance policy. Every policy offered via an employer covers those two options whether or not you need it. You never had the option to carve out coverage."

    On this you are 100% accurate. Agreed.

    "No one knows exactly what will effect premiums next year because we have no idea, at this point, what medical claims will be incurred with the infusion of all these new (over 5 million) individuals with insurance for the first time will be.

    It would seem that by dramatically increasing the number of healthcare consumers all of our costs would drop, because you are increasing the demand for healthcare...but that is way too capitalistic for our non capitalistic healthcare system."

    True, no one really knows. Even, and especially Obama.

    In theory yes, costs should come down. Assuming things work out as Obama and Dr. Emanuel believe it will.

    "Even with the trend to shift more costs to the employee, where employee costs for healthcare have risen over 150% in the last decade and over 13% this last year, we still are constantly dealing with a broken healthcare system."

    Yep, agreed once again. It will get worse IMNHO before it gets better. But, as they say, Patience is a virtue. We'll just have to wait it out and see. Lets talk 10 years hence. After the progressive plan has had time to work out the bugs. Okay?

    TAO, my contention has never been that we don't have a broken system. It was great 40 years ago but went to sh** over the last 15 years. I just don't believe ObamaCare is the answer. I just don't believe enough forethought was given to the ACA, and I just don't understand why the republican party, if its wants to remain relevant for the next generation was not more accommodating and willing to think a bit outside their conventional box.

    We had a broken system, it is likely even with the ACA it will remain broken for far too many, and for far too long. As I said we will just have to wait and see.

    BTW, welcome back.

    ReplyDelete
  12. It hasn't been a flop in Indiana (with the public employees), at Whole Foods, or in Singapore. In fact, it has brought costs down in each of those instances as one would expect when competition and an elimination of the middle man in which people are allowed to spend their own money are instituted.......And when you purchase an individual policy in many states you are NOT forced to pay for coverage that you don't want. I mean, yeah, maybe in heavily regulated states like New York but in the freer states with fewer mandates, no.

    ReplyDelete
  13. RN: The ACA is making healthcare a lot more affordable, kicking people off good insurance plans, directly forcing companies to cut back people's hours, and increasing numbers of uninsured.

    Other than that... a great success!

    ReplyDelete
  14. Most people who go online to search for Home insurance USA
    . yOU can easily find Home insurance quotes easy by finding coverage packages to fit your budget and showing.

    ReplyDelete

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