Tag Archives: Premium

Insurance companies are raising their premiums in response to Obamacare

This story is from Investors Business Daily.

Excerpt:

We pointed out that several states had already tried these “guaranteed issue” and “community rating” reforms, and they’d been a disaster. Higher premiums encouraged the young and healthy to forgo insurance, knowing that they could sign up after they got sick, which drove premiums still higher.

ObamaCare was supposed to avoid this fate by heavily subsidizing insurance premiums and imposing a tax penalty for going uninsured, to get the young and healthy to sign up and keep premiums down.

But when IBD’s Jed Graham looked at the limited number of filings two weeks ago, he noted that insurers were asking for hikes that averaged 18.6%. And as more rate filings became public, that picture hasn’t changed.

In Virginia, for example, just one plan came in with a proposed rate increase below 10%. Three are above 25%. In Texas, Scott & White wants a 32% boost and Humana 30%. Alliance Health Plans in Georgia says that it needs a 37.85% increase.

The reasons given for these huge increases? The insurance pool is older and sicker than expected.

Blue Cross Blue Shield of Illinois, which enrolled more than 329,000 people in the state, wants a 29% hike, saying, “Actual claims experience of the members … is significantly higher than expected.”

CareFirst in Maryland said that its per-enrollee claims shot up 49% in the first year of ObamaCare. WPS Health Plan also cited “the impact of numerous additional taxes and fees imposed upon our plan” as part of the reason why it wants a 19% boost.

It sounds so nice to feelings-oriented voters to cover all kinds of things that some people like, like birth control and sex changes. It sounds so nice to feelings-oriented voters to not turn people away with pre-existing conditions. It sounds to nice to feelings-oriented voters for every plan to cover maternity care – even for people who don’t use it, e.g. – men. But the simple fact of the matter is that when you force insurers to include more coverages and extend coverage to more people, then there will be more claims, and the next rounds of premiums must rise to cover the increased number of claims. That’s how insurance works. Although I doubt the average feelings-oriented Democrat understands that.

More:

What’s more, these big increases are coming before ObamaCare’s temporary industry bailout programs go away. They were specifically designed to protect insurers from big losses, allowing them to keep premiums lower than they might have otherwise.

The cost of claims is going higher. The subsidies to cover the higher claims disappear. The private insurance companies cannot pay the higher claims. The private insurance companies close. The government takes over the health care industry. Taxes go up, to pay for a bloated and wasteful government-run health care system. Patients are forced to wait longer for care, even after paying into the single payer system their whole lives. Conscience protections disappear. More and more unethical behaviors that require health care get covered by the single payer system, encouraging patients to be less responsible since health care is “free”. Tax rates go higher to cover skyrocketing costs of “free” health care. Government decides to cut costs by implementing coerced abortion and euthanasia.

All we have to do is look to Europe and Canada to see how it works. This is how the socialist game plan plays out.

Obamacare fines for non-enrollment TRIPLE for coming year

CBS News reports.

Excerpt:

Americans will see their bank accounts shrink if they don’t sign up for Obamacare in its second enrollment season.

Uninsured Americans who decide not to enroll will face a penalty of $325 per person, more than tripling the $95 penalty those who did not enroll had to pay the first time around.

Children under the age of 18 will be fined $162.50. The maximum amount an uninsured family will be penalized is $975 under the flat-rate method.

[…]CBS News reports that many Obamacare plans will be charging more as a 27-year-old earning 250 percent of the poverty rate will now have to pay an average of 7 percent more for the lowest-cost bronze plan. The analysis from Investor’s Business Daily found that the lowest-cost silver plan will rise 9 percent and the lowest-priced catastrophic policy will go up by 18 percent.

[…]The Health and Human Services Department said earlier this week that between 9 to 9.9 million Americans will receive health care plans through the Affordable Care Act marketplaces for next year’s coverage. That’s lower than the 13 million estimated by the Congressional Budget Office.

[…]The “young invincible” crowd of 18-to-36 year olds is crucial to the law’s success because insurance companies need their business to offset the costs of covering older, sicker and more expensive enrollees.

Recall that conservatives had been warning not enough of these young people have been signing up to pay for these more expensive enrollees. The people who need to be FORCED to sign up are the young people who don’t use health care. These young people – especially young men – have to be forced to pay into the system while not taking anything out. Young men almost never use health care, so they are the perfect serfs for this government controlled health care plan. If lots of young men have to sign up, then the people who need their substance abuse treatments, etc. can get it much cheaper.

Makes you wonder why young people still vote Democrat, doesn’t it? Especially young men! It makes no sense to me.

What does Obama plan to do through executive order after the midterm elections?

Three things, and here they are in this Washington Times editorial.

Excerpt:

The first roundhouse swing: Unless we could quarantine the White House, Mr. Obama’s amnesty announcement will sucker punch millions of Americans who could lose jobs to millions of illegal immigrants. Immigration officials already are advertising to purchase up to 39 million plastic ID cards over the next five years. These are to be Employment Authorization Documentation (EAD) cards, two-year work permits like those given by Mr. Obama to over 800,00 “Dreamers.” Also, Permanent Residency Cards (PRC, often called green cards). Typically, they are good for 10 years.

The solicitation says the base number needed is 4 million cards a year, plus possible “surges” of an extra 5 million ID cards in 2015, 5-million in 2016, 3 million in 2017, 2 million in 2018 and 3 million in 2019. Each is to have embedded RFID chips and holographic images.

Punch No. 2 is more scary news about Obamacare. Next year’s rates should have been revealed Oct. 1st, but that was purposefully delayed until Nov. 14th. Analysts project premiums on the low-cost plans will rise by 14 percent next year. These are high-deductible policies, criticized for requiring a $6,000 deductible to be paid before insurance kicks in. Investors Business Daily reports an expected 64 percent jump in Seattle, rising from $60 to $98 per month. Other examples: In Providence, R.I., the monthly change would be from $72 to $99 per month; Los Angeles from $88 to $111; New York City from $97 to $114.

This Obamacare wallop is a combination punch. Exemptions for “non-compliant” policies will expire, meaning that people who like their coverage cannot keep it. They’ll be knocked down into the Obama mess of high premiums, high deductibles and less choice of doctors. For example, Colorado suffered 22,000 policy cancellations last month alone, with 193,000 more expected in the next year.

Mr. Obama’s third strike at Americans’ jaws is a massive prison release. Expect 20,000 inmates to receive executive clemency in addition to the 36,000 illegal immigrant convicts set free in 2013. Most will be minorities and that’s the heart of the matter. Mr. Obama and Attorney General Eric Holder have often complained that minorities are sentenced for too long, especially for drug offenses. The Justice Department announced this “New Clemency Initiative” in April, then invited criminal defense lawyers, public defenders and the ACLU to do the screening for who they think should be turned loose.

They claim that violent offenders will be weeded out. But this administration is notorious for announcing supposedly strict guidelines but failing to follow them.

There’s also a major risk because a high number may include those recruited in prison by radical Islamists. Those jihadists focus on black American prisoners who want revenge against supposed injustice. The risk is that another Alton Nolen may be among those put on our streets. Nolen, an Islamist convert, was let out of Oklahoma’s prisons early and now is accused of beheading a co-worker in his pursuit of jihad revenge.

Mr. Obama’s plans are in place for the one-two-three punch on amnesty, Obamacare and get-out-of-jail-early. The last remaining barrier protecting us from Obama-unchained is his need to protect fellow Democrats on Nov. 4th. That date is like a boxing bell, signaling Mr. Obama to unleash his barrage.

Regarding that third “punch”, recall that convicted felons vote OVERWHELMINGLY Democrat. That’s why he wants to let them out. We already know that he opposes voter ID verification. Between the release of criminals and the amnesty of criminals, we may never see another roadbock on the road to serfdom ever again in this country.

Obamacare website won’t reveal plan costs until after midterm elections

Last year, they revealed all the plans on October 1st. What could cause them to delay the prices this year for over a month?

The Washington Times explains.

Excerpt:

Those planning to purchase health insurance on the Obamacare exchange will soon find out how much rates have increased — after the Nov. 4 election.

Enrollment on the Healthcare.gov website begins Nov. 15, or 11 days after the midterm vote, and critics who worry about rising premium hikes in 2015 say that’s no coincidence. Last year’s inaugural enrollment period on the health-care exchange began Oct. 1.

“This is more than just a glitch,” said Tim Phillips, president of free-market Americans for Prosperity, in a Friday statement. “The administration’s decision to withhold the costs of this law until after Election Day is just more proof that Obamacare is a bad deal for Americans.”

[…]The Iowa insurance commissioner approved last week premium increases for three insurance carriers: Wellmark Blue Cross and Blue Shield, CoOpportunity Health and Coventry Health. Two of those insurers will implement double-digit hikes ranging from 11.9 to 19 percent, the Des Moines Register reports.

[…]The issue is also resonating in the Louisiana Senate race, where Democratic Sen. Mary Landrieu is seeking re-election against Republican Rep. Bill Cassidy. Documents filed with the Louisiana Department of Insurance show some insurers are anticipating double-digit rate hikes, according to the New Orleans Times-Picayune.

Mr. Cassidy, who’s a doctor, issued a statement Thursday calling the higher premiums “another hurdle for families and businesses already struggling under the demands of Obamacare.”

“Premiums have gone up by 53 percent for the average Louisiana policyholder and many of these policies will again see double-digit increases,” Mr. Cassidy said. “It’s unfair to Louisianans who have to balance their budgets and their businesses.”

I can understand why the Democrats would want to keep the exchange rates private before the election. They are counting on hoodwinking the American public again – vote first, find out what’s in the bill later.

 

Minnesota’s largest and cheapest Obamacare insurer drops out of exchange

The Daily Caller reports.

Excerpt:

The largest insurer with the lowest premium rates on Minnesota’s Obamacare exchange is dropping out because the government health-exchange is unsustainable, the company announced Tuesday.

PreferredOne Health Insurance told MNsure, the state-run exchange, Tuesday morning that it would not continue to offer its popular insurance plans on the marketplace in 2015.

[…]“Our MNsure individual product membership is only a small percentage of the entire PreferredOne enrollment but is taking a significant amount of our resources to support administratively,” the company said in a statement. “We feel continuing on MNsure was not sustainable and believe this is an important step to best serve all PreferredOne members.”

PreferredOne was Minnesota’s largest exchange insurer with 59 percent of individual MNsure sign-ups, according to KSTP. Another four insurance companies — Blue Cross Blue Shield, HealthPartners, Medica and UCare — will continue to offer plans on the exchange next year.

This leaves Minnesota Obamacare customers in a tricky situation. PreferredOne had significantly lower rates than any other insurer on the exchange. When these plans disappear, customers will see a significant rate hike if they choose to continue on the Obamacare exchange, independent of yearly rate hikes.

Minnesota is scheduled to announce premium rates for 2015 Obamacare plans in October and signs point to looming price hikes that will hit Minnesotans doubly hard.

The administration costs are too high.

I noticed that Minnesota has a Senate election this year, and that comedian Al Franken is up for re-election, and he is leading by 9 points. Maybe Minnesota will learn something from their rate hikes and stop voting in a clown who voted for Obamacare. One can hope that money will cause them to learn their lesson.