Highest Increase Estimate Ive Seen

[AllenChicago]

HHS revealed today that in the 34 states where they have an active role in the Exchange-Marketplace, they're pressuring, ("negotiating with") insurers to lower their rates.

Story: Sebelius: HHS negotiating with insurers on premiums - The Hill's Healthwatch

Lower the premiums..or what? They won't be allowed to participate in that state's exchange? I'm sure insurers will be really depressed if they're not allowed to enroll the millions of new high-risk consumers who'll be flooding the exchanges in 2014.

Most likely, the few states that have released the 2014 premiums are the best-case scenarios.
-ac

 

[RayNY]

Allen, this is from your link:

"The federal government doesn’t have the authority to block premium increases or prevent companies from entering the federal exchange as long as they meet standards set out in the law."

Looks like they're going to pressure them with...reprimand? Increased IRS scrutiny? The threat of less lenient treatment in the future?

Barking dog with no teeth IMO.

-"This is the government; lower your rates. We know risk better than your actuaries"
"No"
-"Well, great negotiating with you. Same time next year?"

 

[ABC]

Well, i think that is why we are seeing a delay in the federal exchange releasing rates.

The rates are going to have huge increase. The Gov. can try to negotiate all they want but once you remove underwriting from the equation it's a new ball game.

I think future of health insurance sales is going to be through the exchanges with subsidies. Unless you are doing large group plans.

I feel upper middle class are going to be very pissed off at what they are going to have to pay.

 

[stuy119]

Well, i think that is why we are seeing a delay in the federal exchange releasing rates.

The rates are going to have huge increase. The Gov. can try to negotiate all they want but once you remove underwriting from the equation it's a new ball game.

I think future of health insurance sales is going to be through the exchanges with subsidies. Unless you are doing large group plans.

I feel upper middle class are going to be very pissed off at what they are going to have to pay.

I agree with you, but I'm interested to see how some things shake out in the metro markets before I support this view 100%.

In the Chicago area, I want to see pricing (since many here won't get subsidies because of higher incomes) and networks (because this will be significant for people who are purchasing on-network, especially for those who are paying mostly out of pocket for expensive insurance).

The major metro areas voted more for Obama than other areas, but they will also be the ones who get more subsidy (on the low end) and have higher rate shock (on the high end). The response will be interesting to see, especially those who don't get coverage and need to pay a fine.