Sebelius Concedes Reform Could Raise Premiums

[stuy119]

Oh, hey, glad the administration could finally be honest about it:

Sebelius concedes reform could raise premiums | BenefitsPro

"These folks will be moving into a really fully insured product for the first time, and so there may be a higher cost associated with getting into that market," Sebelius said. "But we feel pretty strongly that with subsidies available to a lot of that population that they are really going to see much better benefit for the money that they're spending."

Other than the fact that it's not their money they're spending, sure. I guess.

 

[Ann H]

You have a Ford, but the govt forces you to buy a Cadillac at a much higher price. Good news? At least you "are really going to see much better benefit for the money that you are spending".

 

[taterpeeler]

so she says yes rates are going up but since you are broke the govt will give you free money so you wont see it..... only those rich evil over 400% people will see the sticker shock and they aint voting for us anyhoo, so f'em

and the additional taxes that will be raised to keep the subsidy wagon afloat... well, again the above 400% of poverty can buck up even more after we gut their deductions in our tax reform.... all to keep that under 400% of FPL from seeing how much insurance actually cost.......

 

[somarco]

You have a Ford, but the govt forces you to buy a Cadillac at a much higher price. Good news? At least you "are really going to see much better benefit for the money that you are spending".

As long as we are talking cars, and I will have to trade up, think I will go for the Bugatti Veyron for $2.4 million.

 

[taterpeeler]

We regret to inform you that the chosen ride is considered a platinum series car and your subsidy will only allow a Cadillac.... you the beneficiary will have to absord the difference from silver cadalic to platinum whatever that thing is

As long as we are talking cars, and I will have to trade up, think I will go for the Bugatti Veyron for $2.4 million.

Image:

 

[Ann H]

About a month ago, the Society of Actuaries (SOA) delivered a report, but it didn't hit the news until yesterday. That report says that medical claims alone is a driver of 32% rate increase due to PPACA. It didn't touch subsidies and market forces, that DC claims would mitigate those rate increases, much to the administrations angst. Below is the Associated Press article, but I have also provided a link to the Society of Actuaries report on pdf. They are showing expected rate increases, state by state, for the medical claims portion alone. The chart is found on page 7.

Study: Health overhaul to raise claims cost 32 pct | Press & Sun-Bulletin | pressconnects.com - Associated Press Article

http://cdn-files.soa.org/web/research-cost-aca-report.pdf - pdf file of the SOA's actual report - chart on page 7 shows rate increases per state expected in the non-group (IFP) market.
- - - - - - - - - - - - - - - - - -
From what I can tell, this is just an analysis of CLAIMS COSTS. It doesn't take into account the extra costs a member would incur for other issues, like a forced upgrade to at least a bronze level plan, nor the addition of maternity for instance. As an "average", it doesn't show the rate increase for young men, for instance.

 

[Yagents]

3 items I bolded below are a joke:

1. "Only one piece of the puzzle" - screw the other 50 pieces
2. "competition in the exchanges" - not with 50% of the carriers exiting the market
3. "Catastrophic coverage" - she needs to learn the definition of "insurance"
4. Speaking of getting hit by a bus........

The administration questions the design of the study, saying it focused only on one piece of the puzzle and ignored cost relief strategies in the law such as tax credits to help people afford premiums and special payments to insurers who attract an outsize share of the sick. The study also doesn't take into account the potential price-cutting effect of competition in new state insurance markets that will go live on Oct. 1, administration officials said.At a White House briefing on Tuesday, Health and Human Services Secretary Kathleen Sebelius said some of what passes for health insurance today is so skimpy it can't be compared to the comprehensive coverage available under the law. "Some of these folks have very high catastrophic plans that don't pay for anything unless you get hit by a bus," she said. "They're really mortgage protection, not health insurance."
- - - - - - - - - - - - - - - - - -
The eggheads over at the society also pointed out which states can expect to see the biggest jumps – and discounts, so to speak. In some kind of perverse Robin Hood twist, you can't help but notice that some of the lower-cost markets get screwed while the higher-priced ones come out ahead:
Top five state increases

• Ohio: 80.9 percent
• Wisconsin: 80 percent
• Indiana: 67.6 percent
• Maryland: 66.6 percent
• Idaho: 62.2 percent

Top five state decreases

• New York: 13.9 percent
• Massachusetts: 12.8 percent
• Vermont: 12.5 percent
• Rhode Island: 6.6 percent
• New Jersey: 1.4 percent

http://www.benefitspro.com/2013/03/27/robbing-the-rich?eNL=5153357dca9f8019710002e4&utm_source=BenefitsBrokerPro&utm_medium=eNL&utm_campaign=BenefitsPro_eNLs&_LID=129671558

 

[stuy119]

The 5th best "lowering" of insurance premiums is 1.4%. The 5th largest increase will be 44.5 times larger at 62.2%. I imagine the median increase will be 35-40%, minimally (didn't see that number).

Affordable Care Act. I'm going to be mentioning that to everyone whenever I quote a price. I want them to see the incongruity.

 

[somarco]

special payments to insurers who attract an outsize share of the sick

Reinsurance is not new, even when the govt provides it. You can bet if this plan does not mitigate losses, and they will be massive, the carriers will bail on this in a heartbeat and leave DC (and Blue Cross) holding the bag.

"Some of these folks have very high catastrophic plans that don't pay for anything unless you get hit by a bus," she said. "They're really mortgage protection, not health insurance."

Political hogwash.

That's like saying your HO insurance isn't any good because it does not cover maintenance items like painting, new gutters, repair or replacement of a roof.

Or your car insurance plan sucks because it does not pay for tires, brakes, oil changes and wiper blades.

 

[Quotebroker]

"The study also doesn't take into account the potential price-cutting effect of competition in new state insurance markets that will go live on Oct. 1, "

I don't get this. How is there going to be increased competition when there will be less insurers in the exchange than are currently on the private market?