Health Insurers Warn on Premiums

[HiPointDem]

Health insurers are privately warning brokers that premiums for many individuals and small businesses could increase sharply next year because of the health-care overhaul law, with the nation's biggest firm projecting that rates could more than double for some consumers buying their own plans.

The projections, made in sessions with brokers and agents, provide some of the most concrete evidence yet of how much insurance companies might increase prices when major provisions of the law kick in next year—a subject of rigorous debate.

The projected increases are at odds with what the Obama Administration says consumers should be expecting overall in terms of cost. The Department of Health and Human Services says that the law will "make health-care coverage more affordable and accessible," pointing to a 2009 analysis by the Congressional Budget Office that says average individual premiums, on an apples-to-apples basis, would be lower.

The gulf between the pricing talk from some insurers and the government projections suggests how complicated the law's effects will be. Carriers will be filing proposed prices with regulators over the next few months.

Part of the murkiness stems from the role of government subsidies. Federal subsidies under the health law will help lower-income consumers defray costs, but they are generally not included in insurers' premium projections. Many consumers will be getting more generous plans because of new requirements in the law. The effects of the law will vary widely, and insurers and other analysts agree that some consumers and small businesses will likely see premiums go down.

http://online.wsj.com/article/SB10001424127887324557804578374761054496682.html?mod=djemalertNEWS

[The Straight Story]

1. Let me explain how this will work

They will raise rates through the roof and use this as an excuse.

GOP will use this as a crutch for 2014 elections.

Eventually it will be shown they 'miscalculated' (lied) and they will keep 90% of the profits and pay a 10% penalty.

The GOP will not mention that when it happens.

We get screwed, they get richer and roll more money into gop.

[green for victory]

2. "Federal subsidies under the health law will help lower-income consumers defray costs"

the subsidies are tax credits aren't they?

Do people think they're going to get a check to help with the monthly premium?

[magellan]

3. They'd better not be annual tax credits

That'll be worthless to us in our situation.

[jazzimov]

4. They're scared shitless. They had to rebate 1.5 billion in 2012

because of the new MLR rules that kicked in during 2011.

In case you don't know about the MLR rules in the PPACA:

http://www.fas.org/sgp/crs/misc/R42735.pdf

[Turbineguy]

5. My wife and I pay $782 per month.

We have not exceeded our deductible. That means United Health care needs 11,616 customers like us just to pay the CEO.

We are however with Blue Cross who only need 1279 customers like us to pay the CEO.

[Honeycombe8]

10. That's not what they look at. They all have plenty of $ to pay executives.

They look at amount of total claims paid.

They are prohibited by law from charging rates more than 15% above the total claims paid. If they collect more than that in premiums, they must refund that money.

I got a lettter last year from United HealthCare that they would be issuing a refund because they had collected more than 15% above the claims paid (the ACA provides that insurers must pay out 85% of premiums collected for claims, for group policies, and 80% for individual policies).

So executive compensation, compensation and benefits for total staff, other overhead expenses, are just cost of doing business and don't figure into the setting of premiums. They are rich enough that overhead isn't a problem for them.

[onethatcares]

6. when you see the words

"projections" "brokers" "agents" in the same sentence as insurance companies you can bet your ass they aren't discussing how to better treat your health problem.

they're fucking jackals ripping the last of the meat from the carcass.

[Ruby the Liberal]

7. The shareholders need to suggest that they find cheaper executives then.

[jwirr]

8. There is always single payer.

[JaneyVee]

9. At the LEAST, we NEED a public option.