Insurance companies seeking BIG rate increases for 2016: Says thanks for saying no to single payer.

[Skwmom]

This discussion thread was locked as off-topic by Raine1967 (a host of the 2016 Postmortem forum).

Last edited Thu Sep 17, 2015, 08:38 PM - Edit history (5)

http://www.nytimes.com/2015/07/04/us/health-insurance-companies-seek-big-rate-increases-for-2016.html?_r=0

WASHINGTON — Health insurance companies around the country are seeking rate increases of 20 percent to 40 percent or more, saying their new customers under the Affordable Care Act turned out to be sicker than expected. Federal officials say they are determined to see that the requests are scaled back.

Blue Cross and Blue Shield plans — market leaders in many states — are seeking rate increases that average 23 percent in Illinois, 25 percent in North Carolina, 31 percent in Oklahoma, 36 percent in Tennessee and 54 percent in Minnesota, according to documents posted online by the federal government and state insurance commissioners and interviews with insurance executives.

Update:

Jesse Ellis O’Brien, a health advocate at the Oregon State Public Interest Research Group, said: “Rate increases will be bigger in 2016 than they have been for years and years and will have a profound effect on consumers here. Some may start wondering if insurance is affordable or if it’s worth the money.”

President Obama, on a trip to Tennessee this week, said that consumers should put pressure on state insurance regulators to scrutinize the proposed rate increases. If commissioners do their job and actively review rates, he said, “my expectation is that they’ll come in significantly lower than what’s being requested.”

The Oregon insurance commissioner, Laura N. Cali, has just approved 2016 rate increases for companies that cover more than 220,000 people. Moda Health Plan, which has the largest enrollment in the state, received a 25 percent increase, and the second-largest plan, LifeWise, received a 33 percent increase.

Note: The ACA was a GOOD starting place (KUDOS to President Obama) BUT we have to switch to a more cost effective system. We need a system that provides health care not health insurance because it will be much more affordable. Anyone who thinks this won't pit the poor against the middle class (and will be used to divide us) does believe in unicorns and rainbows.

[Purveyor]

1. This will be a major factor in the 2016 elections, indeed. eom

[Fred Sanders]

2. Does the article mention the rate increases are mainly for junk policies not previously Obamacare compliant?

Or that the increases will surely be cut back because of the regulation built into Obamacare?

Or thst uninsured rates have plunged?

Why is it always the "bad news" that gets the ink?

[RKP5637]

3. Excellent points!!! n/t

[Fred Sanders]

7. Estimated 4 million totally junk policies before Obamacare costing little and providing nothing.

Obamacare got rid of an unregulated market that was milking millions from poor folk who desperately wanted to St least thing they had some insurance.....of course any policy now will cost more...hence the inrease from 25 cent a day "plans" to a actual plans will look like a huge increase.....truth is in the details as well as the devil.

http://www.forbes.com/sites/danmunro/2013/11/12/estimate-of-junk-health-insurance-market-over-1200-plans-covering-almost-4-million-people/

[Skwmom]

30. And that was a very good thing but PREMIUMS are going up and more and more people will NOT

be able to afford the premiums.

[thesquanderer]

34. If they truly cannot afford the premiums...

...then they are supposed to be able to qualify for subsidies.

[Chef Eric]

38. And what do they do if the subsidies don't keep pace with the premiums? nt

[Skwmom]

4. Pres Obama: State Insurance Regulators must handle rate increases. Some states already approved

rates. The insurance companies would not ask for the rate increases if they had no chance of getting them.

President Obama, on a trip to Tennessee this week, said that consumers should put pressure on state insurance regulators to scrutinize the proposed rate increases. If commissioners do their job and actively review rates, he said, “my expectation is that they’ll come in significantly lower than what’s being requested.”

The Oregon insurance commissioner, Laura N. Cali, has just approved 2016 rate increases for companies that cover more than 220,000 people. Moda Health Plan, which has the largest enrollment in the state, received a 25 percent increase, and the second-largest plan, LifeWise, received a 33 percent increase.

[Fred Sanders]

6. For former junk policies? Millions of junk policies will now cost more because they are no longer junk.

That is a known fact.....whatever do folks think happened to those $50 a month "policies" that would cover nothing worse than a hung toenail?


Forbes
NOV 12, 2013 @ 01:00 AM 12,026 VIEWS
Estimate Of 'Junk' Health Insurance Market - Over 1,200 Plans Covering Almost 4 Million People

With names like “Mini-Meds,” “Discount Health Cards,” “Medical Discount Plans” and “Fixed Benefit Indemnity Plans,” they sort of sound like health insurance. In fact, that’s exactly how they were marketed and sold – often on late night television.

One such company called HealthcareOne LLC had a particularly effective TV ad that pushed “A Real Healthcare Plan Starting As Little As 25 Cents A Day.”

Operating primarily out of a suburb of Phoenix, it was estimated that HealthcareOne was taking in about $500,000 to $600,000 per month – before the FTC shut it down. The list of DBA’s was impressive:

* Health Care One LLC

* HealthCareOne

* Americans4Healthcare

* Citizens4Healthcare

http://www.forbes.com/sites/danmunro/2013/11/12/estimate-of-junk-health-insurance-market-over-1200-plans-covering-almost-4-million-people/

Plenty of large companies also sold these essentially useless plans that now must have minimum actual health insurance coversge.....of course the rates will rise a lot, you are actually buying something useful!

[Skwmom]

32. I APPLAUD PRES Obama for getting rid of the junk policies BUT that doesn't refute the fact that

premiums are going up and up, deductibles are increasing and more and more people will not be able to afford it.

ACA was a good starting place but is not sustainable in the long run.

[SheilaT]

36. A while back we had quite a few here on DU

complaining bitterly about their increased health insurance costs. No one complaining like that was ever willing to admit what they'd had was one of those junk policies.

Plus, I believe the insurance companies must now spend what is it? 85% of their premium money on actual health care for their clients. So unless their costs really have skyrocketed (which is entirely possible) then they shouldn't be asking for that much.

[Uncle Joe]

5. And if the movement doesn't succeed, it's only going to get worse.

http://www.democraticunderground.com/1002506292



Thanks for the thread, Skwmom.

[Maedhros]

8. The ACA will not succeed

unless it makes BOTH health insurance as well as actual health care affordable for working class Americans.

I say scrap it and go for Medicare For All. Bernie Sanders will work toward this; Hillary Clinton will work against it.

[liberal_at_heart]

9. +1

[restorefreedom]

10. yup. medicare for all is the best fix

and we know which candidate will NOT be in support of that.

[Maedhros]

12. I firmly believe that we cannot rest on our ACA laurels

and that we must aggressively push for Medicare For All.

We've already seen some erosion of the ACA by Congress. It will only get worse.

My criticism of the ACA from the beginning was that it represented a half-measure and was simply a political football, the passage of which Obama and the Democrats would point to as a landmark achievement for PR purposes but in reality would change very little for the average American. I stand by that initial assessment.

[Skwmom]

16. It pits the poor against the middle class

who will struggle to pay the increased premiums.

[Fred Sanders]

23. How does the ACA pit economic classes, other than the rich who pay more with no subsidies against the newly

insured and poor?
I do not see the logic in the conclusion you made.

[Skwmom]

37. Insurance companies say they are raising rates because of people they are now insuring under the ACA

The rate increases will apply to ALL subscribers; however, some people will get their premiums supplemented by the government because they can't afford it.

Many people are struggling to pay their insurance premiums. When those rates are increased they will become very frustrated and the Republicans will try to direct that frustration to the people that are having their premiums paid in part by the govt.

The insurance companies and their greed will not be blamed.

Pitting the poor against the middle class for political advantage has been used for years.

[restorefreedom]

17. i think it was a good first step

not sure the majority could have leapt into mfa. but perhaps now, as people see costs climb and they see how well medicare works....hopefully

[hifiguy]

11. Eeyup. nt

[Uncle Joe]

13. Precisely, and the longer that Citizens United has to metastasize in the body politic

the weaker the ACA will become as a result.

Medicare for all is the best and most logical solution.

[canoeist52]

14. Thank you - such an importany point - affordable Health CARE.

[Skwmom]

15. It was a good interim measure. n/t

[Fred Sanders]

18. It already has, in so many ways. Is Obamacare is now going to be the new target of LW attacks??

This habit of making perfection the enemy of the good is getting repetitive.

Obamacare's success is an example of how revolution can occur through evolution.....a public option is around the corner if the insurance companies wrangle too high premium increases.

[Skwmom]

19. We have to switch to a more cost effective system. It was a good starting place

but in the long run it is too costly and will pit the poor against the middle class.

[Fred Sanders]

20. The Affordable Care Act is already succeeding in far more ways than just focusing on premiums.

I trust you understand how 4 million former junk policies cancelled because they did not comply with the minimum standard regulations of the ACA would now cost a lot more, especially percentage wise, now that the policies are...well, no longer junk?

A Bronze plan with minimum but still good actual coverage and with subsidies costs millions of newly insured poor exactly zero dollars.

That middle and middle-upper class and the "Cadillac plans" of the most fortunate pay more to subsidize the zero cost coverage, essentially universal free health care* for millions of poor, is a GOOD thing! Kind of a stealth income redistribution system.....that is how I see it and that is how the ACA was designed and why the party of the rich hate it so.

And how the ACA forces all companies to dedicate a minimum of 80% of premiums for actual health care expenses...and how that forced thousands of snake oil companies to fold?

*which I robustly support, in time, as the ultimate goal

[ibegurpard]

21. Many of us were opposing at the time IT WAS HAPPENING!

You don't turn government tax dollars over to for-profit middlemen and expect them to fix healthcare costs!

[99Forever]

24. Exactly n/t

[Fred Sanders]

28. Having to defend the ACA against RW talking points....what is happening at this place?

Anyone, I am done on this thread. Hope others see the nonsense for what it is.

[99Forever]

40. If by "RW" you mean REAL WORLD...

... we can have a discussion. Otherwise, you exactly what to do with your lame attempt at deflection.

[Doctor_J]

22. mine went up 1600% two years ago. expecting another huge hike this year

People with company plans are footing the bill for this travesty. And guess what...It's never going away. The ACA killed single payer.

[Fred Sanders]

25. What did you pay before? What kind of policy was it? Some "plans" were sold for pennies a day!

And provided actual zero coverage! Before the ACA put an end to the junk plans.......which is probably what you had..which was junk and so you had nothing and were simply had.

Percentage increases tell me nothing....compliant policies will of course cost maybe a 3 dollars a day....there is your "1600%" increase!

[Doctor_J]

29. my premiums stayed the same. annuals went from 500/yr to 8500/yr. since I have an employer plan,

I'm stuck. Thanks Obama! I wish he hadn't lied about the public option in 2008

[Fred Sanders]

31. You are an employer? Why didn't you say so on your first post? Are your employees happy?

They should be because your old plan probably did not cover near as much. Happy employees makes for good business sense...seems a small price to pay for healthier employees.

And the "annuals", whatever that is, would be tax deductible?

And "Obama lied"??.....I see where you are coming from now.

[Doctor_J]

33. uh, no. I am a wage slave who has a plan through my employer.

We're the ones bearing the brunt of these obscene profits.

[Skwmom]

39. I think Obama did the best he could at the time but the ACA was only a starting point. n/t

[Doctor_J]

26. The ACA is not a starting place. it set US healthcare back by decades

We will be stuck with profiteers in the system for at least fifty years. It's going to have to be undone before real healthcare can be enacted.

[Fred Sanders]

27. Nonsense.

[NCTraveler]

35. One of the benefits of the ACA.

Read the article. This is another stepping stone toward single payer. This whole article is a talking point for us and something everyone of us already knew. People with junk policies or no insurance at all are in overall worse health than the known quantities they were already insuring under good plans. They, the professionals, even admit to being unprepared for how much worse they were.

Now even they have admitted to the public that health care in this country is a direct form of economic oppression.

It also shows that they are using the insurance. With many of the plans that was a concern of mine.

This is building anger at the insurance industry. Like to admit it or not that is of huge importance to getting to single payer.

I don't fault the ACA for this. The Feds and state governments will have to work to ease the burden.

[Raine1967]

41. Locking. Please consider reposting in General Discussion.

http://www.democraticunderground.com/?com=about&forum=1251

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A forum for general discussion of the Democratic presidential primaries. Disruptive meta-discussion is forbidden.

Thank you for you understanding.

Raine