Obama Urges Insurers to Keep Premiums Flat for 2015....

[djs]

Well, this falls right in line with the 'average premium increase is 6.9%'

I guess if you look at the carrier rates, that might be true. If you look at what people pay, its not.

In simple terms, lets say the 'average is 10%' for simple math.....

In an area, you have 3 policies.

Policy 1: $400 a month, has 10 people signed up. Premium goes stays flat
Policy 2: $200 a month, has 100 people signed up. Premium goes up 5%
Policy 3: $100 a month, has 1000 people signed up. Premium goes up 25%

So, overall, we had a 30% increase on 3 policies, or an average of 10%, right?

Except the overwhelming majority of people had a 25% increase in their premium. In fact, the weighted average premium increase is almost 23%

The best analysis would be to compare the reference policy to the new reference policy.

Dan

 

[FLM2]

Well, this falls right in line with the 'average premium increase is 6.9%'

I guess if you look at the carrier rates, that might be true. If you look at what people pay, its not.

In simple terms, lets say the 'average is 10%' for simple math.....

In an area, you have 3 policies.

Policy 1: $400 a month, has 10 people signed up. Premium goes stays flat
Policy 2: $200 a month, has 100 people signed up. Premium goes up 5%
Policy 3: $100 a month, has 1000 people signed up. Premium goes up 25%

So, overall, we had a 30% increase on 3 policies, or an average of 10%, right?

Except the overwhelming majority of people had a 25% increase in their premium. In fact, the weighted average premium increase is almost 23%

The best analysis would be to compare the reference policy to the new reference policy.

Dan

Based on what I've seen so far, rates are going to be up by at least 20% for most carriers in Florida (with a couple of exceptions), I don't see that averages out to 6.9% either but am sure the White House Chief of Spin (whoever gets that thankless task this week) will try to figure something out.