2015 Rate Increases Rolling in

[Happy Texan]

8-25-2014

A perspective of how government reinsurance programs are keeping premiums lower than they would be without these programs.

Article: ObamaCare 2015 Premium Hikes: More Than Meets The Eye - Investors.com

The insurance company bailout provisions are scheduled to terminate at the end of 2016 however.
ac

By 2016 we expect to be on the public exchanges as the insurer of first dollar expanding monthly at a 35 percent guaranteed return on paid for premiums
Today's reinsurance takes place at higher levels and do not involve a significant percentage of claims
In fact those piper ranges are the exact ranges an insurer with large enough reserves should be placing their risk
By covering first dollar of claims eventually the first $60,000 of claims Nationial Prosperity. Life and Health will cover 80 percent of the risk and 80 percent of the premium on a paid for basis leaving only 20 percent of the premium
For the insured
We will be saving the government so much money for subsidies we may be declared a not for profit insurer!
Don Levit
Treasurer of NPLH

 

[Duaine]

BCBS of K.C. announced that ACA individual business on Exchange is getting a 9.9 % increase across the board.

Non-ACA is as follows:

17.9 % to 24 % for various plans. Kids 14-18 will get a 40% increase on the family plans.

 

[AllenChicago]

BCBS of Illinois is increasing what they call "Grandmothered" ACA premiums (plans written 2010 thru 2013) by 26.8% effective 1-1-2015.

Why do these plans increase at a larger percentage than ObamaCare (2014) plans? The benefits aren't nearly as "rich".

But, even with the 26.8% increase, these Grandmothered plans will still cost less than what the non-subsidized 2015 ObamaCare plan alternative will be.
ac

 

[Yagents]

20% increase on $300 premium = 10% increase on $600 premium.

Net net, cost up $60 per person.

Plus 3 R's protection.

Plus, carriers state the old plan extensions may cause distortions in a.c.a plans

Just my educated guesses

 

[AllenChicago]

20% increase on $300 premium = 10% increase on $600 premium.

Net net, cost up $60 per person.

Plus 3 R's protection.

Plus, carriers state the old plan extensions may cause distortions in a.c.a plans

Just my educated guesses

Are you saying that the plan extensions rob a company of premium dollars that could be used to lower the premiums (or reduce the increases) on a company's ACA portfolio?

If so, then Humana and Aetna should come in with lower premiums in 2015 than they had in 2014, because they're cancelling their Grandmothered plans. And,if their 2015 premiums are lower, they might retain those customers. Hmmm... We'll know in 33 days. (Illinois)
ac

 

[Yagents]

Oh boy, they still don't get it. When the SLCSP goes down, everyone else buying any other plan besides the SLCSP will have their costs go up. They get all excited about it, and then in the same breath, state the Bronze plan rates are going up. The combination of the two, makes the bronze price go up a lot more than just the rate increase.

Not only that, i'll bet most of the drops are related to the gov't funded CO-OPS lowering their price, so they don't go out of business in year 3.

Some big Obamacare news: premiums will fall in seven big cities - Vox