Obamacare Subsidies

yep... and if you attempt to modify an income declared on your original FFM app your playing Russian Roulette if it works.... or if it terms your policy and your left with nothing.... welcome to the Mickey Mouse Clubhouse
 
The subsidies are based on the second lowest silver plan in each state.
All that is needed is two enterprising insurers who can figure out a way, over time, to reduce premiums significantly, such that subsidies would be 60-80% lower than the rest of the insurers.
I would think that the best two men win, then, over time, and that includes the participants.
Don Levit
 
DWilly,

Losses must also comply with MLR. Believe me, there isn't much room to increase admin expense (or lower premium with stable admin expense) while still avoiding rebates.

They can under-price the risk, and pay out more medically, relying on "the R's" to indemnify the loss. I guarantee it's already happening in some states, certain insurers are significantly lower and it's completely possible they are knowingly priced below what the risk would dictate in order to grab market share.
 
DWilly,

Losses must also comply with MLR. Believe me, there isn't much room to increase admin expense (or lower premium with stable admin expense) while still avoiding rebates.

They can under-price the risk, and pay out more medically, relying on "the R's" to indemnify the loss. I guarantee it's already happening in some states, certain insurers are significantly lower and it's completely possible they are knowingly priced below what the risk would dictate in order to grab market share.

I'm sure the war for market share is heating up.
Never doubt what a "crafty" accountant can do w/ the right numbers though. ;)
 
I'm sure the war for market share is heating up.

I doubt it, but anything is possible. My prediction is fewer carriers next year, especially on the exchange and (of course) higher rates.
 
With subsidies based on the second lowest silver plan, it behooves 2 insurers to kind of work together to establish a low base from which to pay subsidies.
That should increase market share pretty fast.
In a few years, when our newly forming insurer has enough assets to go on the public exchanges, that will be one of our moves, for our unique design lowers premiums over time, without medical trend.
We may need to license a separate insurer so that 2 companies can play the game.
Don Levit
 
I doubt it, but anything is possible. My prediction is fewer carriers next year, especially on the exchange and (of course) higher rates.

Can't let those rates get too high, the Dems will freak out and could possibly lose the Senate (gasp). That would make it hard for Hillary to have her way after she's in the white house. Well, there's always royal decree, I mean executive order. :1arghh:
 
Speaking of vanishing subsidies- I got a call today from a client who tells me that they were recently kicked off their exchange plan and assigned to Medi-CAL. Spoke with CoveredCA staff, and their explanation is that the poverty level guidelines have changed as of 4/1 and they are automatically disenrolling anyone who no longer qualifies for the exchange based on the new guidelines- no warning letter, no phone call, nothing. Just wake up one day with a cancellation letter and a "Welcome to Medi-CAL" packet. Anyone else experience this either in CA or on the Federal Marketplace? I can't imagine what the person in charge of this directive was thinking
 
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