Obama Urges Insurers to Keep Premiums Flat for 2015....
- Thread starter timsip
- Start date
He sold Montana to China for the cash....
- 8,448
Obama administration is determined to avoid nasty premium surprises before the 2014 mid-term November elections. A waiver of the 2015 mandate for large employers to have official ObamaCare plans is in the works too. Having millions of people receive notices of insurance termination, or 20%-80% increases would make the Democrats sure losers.
-ac
-ac
ActuaryGuy
Expert
- 59
I think that the average of all increases won't be too bad in most states. However, some (perhaps many) of those state averages will include some carriers with significant increases (i.e. over 20%). It's just the way it is, everyone made different assumptions last year, and some of them were wrong in a way that will require increases to correct. Extensions of transition plans won't help, and the new piles of cash will not compensate enough for them.
- 1,896
Aren't they keeping premiums under wraps until the OEP starts in Nov? If so, that's conveniently AFTER the election.
- Thread starter
- #6
Carriers are beginning to submit plans and rates effective 5/1 and I think they are due in July if I am not mistaken. Then there is the back and forth between DOIs and insurers until they can agree then to the Feds for their blessing. If I recall (and I can't put my finger on the document right now) everything is to be done by October, conveniently ahead of the elections.
And I'm pretty sure that part of the final regs is that renewal numbers are to the members 60 days out. So they will get their increase about one week before the election.
- 8,448
Will the 2015 renewal premium for CURRENT metal plan insureds be the same as what NEW purchasers pay starting on 1/1/2015?
In the past, renewal premiums were always higher than what a new customer would pay. I think that system is history now isn't it? When insurers announce their 2015 rates/premiums, these will apply to both New Business and Renewal Business. Correct?
On a related note, several states will announce the 2015 premiums within the next 10 days, or so. Perhaps there's no need to wait for HHS to rubber-stamp them as "approved", like it did for virtually carrier last year.
Story: What a coincidence! Key states set to announce premium rate increases for 2015 « Hot Air
ac
In the past, renewal premiums were always higher than what a new customer would pay. I think that system is history now isn't it? When insurers announce their 2015 rates/premiums, these will apply to both New Business and Renewal Business. Correct?
On a related note, several states will announce the 2015 premiums within the next 10 days, or so. Perhaps there's no need to wait for HHS to rubber-stamp them as "approved", like it did for virtually carrier last year.
Story: What a coincidence! Key states set to announce premium rate increases for 2015 « Hot Air
ac
Which is why I am wondering how states are already announcing numbers. Is it preliminary numbers before HHS has approved them? And they are secure in the knowledge that HHS isn't going to increase anyone's proposed rates?
