Rate Shock and Awe HR 544 (Liberty Act)

[Dave020]

From NAHU e-mail today

Last week Congressman Phil Gingrey (R-GA) and Jim Matheson (D-UT) introduced H.R.455 Letting Insurance Benefit Everyone Regardless of Their Youth- or the Liberty Act, bipartisan legislation to address the impact that the Patient Protection and Affordable Care Act (PPACA) age-rating rules have on young invincibles.

PPACA stipulates that January 1, 2014 state insurance markets must conform to cookie-cutter age rating standards of 3-to-1.This means that the oldest enrollee can only be charged three times that of the youngest enrollee--with no consideration given to current market standards. This provision will force 42 states to implement an overnight change that will result in drastic premium increases and "rate shock" for its citizens.

Federal and state policy makers-alike are concerned that the younger and healthier portion of the population will leave the health market and skew it by opting to pay the penalty rather than the cost of coverage.

The Liberty Act will help by:

• Changing the age rating standard from 3-to-1 in PPACA to a rate of 5-to-1.

• Giving states the flexibility to determine their own age-band or default to 5-to-1.

 

[Yagents]

Re: Rate Shock & Awe HR 455 (Liberty Act)

It won't pass, AARP is already fighting against it. Too bad those youngsters don't have the money or a lobby to fight for them. They should just shut up, get a job, and pay more Fica/Futa taxes. Kind of deja vu all over again for them, different tax for a different health program.

 

[taterpeeler]

Re: Rate Shock & Awe HR 455 (Liberty Act)

It won't pass, AARP is already fighting against it. Too bad those youngsters don't have the money or a lobby to fight for them. They should just shut up, get a job, and pay more Fica/Futa taxes. Kind of deja vu all over again for them, different tax for a different health program.

I thought this group liked taxes?

 

[Dave020]

Re: Rate Shock & Awe HR 544 (Liberty Act)

To correct NAHU's typo, it's HR 544 not HR 455.

 

[Ann H]

I think your thread title "Rate Shock and Awe" and Tater's previous one "IRS says, Boom!" will be resounding through America as early as June and definitely by late September. This is the tidal wave that follows the earthquake.

 

[AllenChicago]

Friday 2/22/2013
HHS has announced more guidance for insurance companies to use when setting premiums. I don't know if it's good or bad news for insurers and agents. They're also working on how to prevent people from enrolling in a policy just before visiting the doctor, or E.R..

Story: HHS completes PPACA rate, market regs | LifeHealthPro

-Allen

 

[Yagents]

Speaking of Shock and Awe:



U.S. sticks to limits on health insurance charges for older people - Yahoo! Finance



WASHINGTON (Reuters) - The Obama administration on Friday finalized new consumer safeguards for health insurance that impose tighter restrictions on what insurers can charge older customers, despite industry warnings that the young may be forced to pay more as a result.
The Department of Health and Human Services rejected an industry request to phase in a reform prohibiting insurers from charging older beneficiaries premiums more than three times higher than those available to younger adults.
The so-called 3:1 ratio, due to take effect in 2014 in the individual and small-group markets, is a cornerstone of consumer safeguards enshrined in the 2010 Patient Protection and Affordable Care Act. The law also bars insurers from policies that discriminate on the basis of gender and pre-existing conditions.

 

[AllenChicago]

It's too bad that the reporters who write these stories don't understand that Obamacare WILL raise premiums significantly for EVERYONE.

The article referenced in the post from YAgents immediately above is a good example. The author says that health insurance premiums for people age 50 to 65 will decrease from 5-8% due to the 3:1 premium ratio restriction, and the premium for young people will increase 19-29%.

If you take all the mandates, taxes and fees that we know about and add them together, it's clear that EVERYONE's premium will increase by at least 50%.. and premiums for those under age 40 will go up at least 100%. Since HHS will continue to develop new mandates until every private insurer is out of business, the 2014 "Rate Shock" is just the beginning of catastrophe.

 

[stuy119]

Exactly. Those baby boomers about ready to retire are going to enjoy paying for maternity coverage on their policies.

 

[somarco]

The so-called 3:1 ratio, due to take effect in 2014 in the individual and small-group markets, is a cornerstone of consumer safeguards

How is a provision that disproportionately increases rates for younger people vs older a consumer safeguard? Especially with a prez that favors socialism.