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My feeling is these rates increases have to justified.
A carrier should be able to justify the rate increase if medical trend and loss ratios are what they say they are.
These small companies are not taking on any large risk. They have a reinsurance contract. The national carrier are doing the same thing.
A company like this does not have a big enough block and I bet their block has become toxic.
Justified according to whose criteria?
HHS simply says the national average is 10%. If you want more, prove it.
That's BS.
Carriers use trend based on their internal database blended with actuarial tables purchased from folks like Milliman.
If DC insists on sticking their nose into something about which they are clueless carriers will simply withdraw from the market.
If DC wants to play games the smart carriers will beat them at their own game because DC is too stupid to figure out all the angles.
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DC may be counting on everyone pulling out so they have the market to themselves, a la single-payor.
Possibly.
Only issue is, the tax base can't support it. They can't even cover Medicare and Medicaid now. How will they pay for the other 60% of the population?
DC operates in ways no individual or corporation can, spending 100% of every dollar they take in and borrowing another 40% on top of that.
And as for the rate increases, DC still hasn't figured out the market will decide if the increase is excessive.
If a carrier feels they need to raise rates 30% let them. Their competitors will take the business away from them unless of course all carriers need that much.
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I am going to agree and disagree with you.
I agree DC has no clue of what they are doing.
I disagree that the carriers are totally transparent on rate increases. Just a couple of years ago it became known that Wellpoint was using the wrong actuarial table for their rate increase. Wellpoint is one of the top carriers.
There is no reason why the carriers cannot be transparent on this topic.
I agree DC has no clue of what they are doing.
I disagree that the carriers are totally transparent on rate increases. Just a couple of years ago it became known that Wellpoint was using the wrong actuarial table for their rate increase. Wellpoint is one of the top carriers.
There is no reason why the carriers cannot be transparent on this topic.
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Idaho health insurers now must disclose more information than in the past | Business | Idaho Statesman
he new disclosures will explain things like:
Æ Changes in how they allocate expenses among health benefit plans.
Æ The relationship between the "base premium" -- the lowest rate possible for a certain type of person -- and new premium rates.
Æ What characteristics are used to set premium rates, such as age, gender, geography and tobacco use, as well as characteristics used in determining risk, like health status and family composition.
The state will also need insurance companies to disclose some major information, such as how some medical trends have changed, how much it spends directly on medical care and any changes in its administrative costs.
he new disclosures will explain things like:
Æ Changes in how they allocate expenses among health benefit plans.
Æ The relationship between the "base premium" -- the lowest rate possible for a certain type of person -- and new premium rates.
Æ What characteristics are used to set premium rates, such as age, gender, geography and tobacco use, as well as characteristics used in determining risk, like health status and family composition.
The state will also need insurance companies to disclose some major information, such as how some medical trends have changed, how much it spends directly on medical care and any changes in its administrative costs.
