Obamacare delay would send rates soaring

[The Stig]

Original story HERE at CNN

Obamacare delay would send rates soaring
By Tami Luhby @Luhby November 1, 2013: 7:02 AM ET

Insurers need young, healthy enrollees to keep Obamacare premiums low.
NEW YORK (CNNMoney)

Delaying Obamacare by just a few months could send insurance premiums through the roof.

Congressional Republicans and some Democrats are pushing to give individuals more time to sign up for Obamacare after major technical problems have stymied enrollment. But insurers say the consequences of such a move would be heavy.

That's because insurers set their rates for 2014 assuming that all Americans would be subject to the individual mandate, which requires them to get health insurance or face penalties.

Under the Affordable Care Act, insurers must provide coverage to everyone -- even the sickest people -- which would greatly increase insurers' risk and cost. To offset this, lawmakers included the mandate to prompt younger, healthier people who don't use a lot of medical care to sign up.

But if the mandate were delayed by a year, many of those lower-cost folks may not sign up. About 2 million fewer people would would obtain coverage in the individual market, according to the Congressional Budget Office.

"All rates filed and approved with regulators are based on the mandate being in effect and the enrollment period ending March 31," said Robert Zirkelbach, spokesman for America's Health Insurance Plans, an industry trade group. "If that were to change, the rates would have to change."

If the individual mandate didn't exist, premiums would be about 15% to 20% higher, according to the CBO.

Adjusting the 2014 rates, however, could be pretty tough to do. How that would work remains an open question, Zirkelbach said.

It's possible some insurers could appeal to state and federal regulators to increase the premiums mid-year, but there's not a lot of precedent for that, said Yevgeniy Feyman, fellow at the Manhattan Institute, a free-market think tank.

It's not only next year's rates that could be affected. If the mandate is delayed, 2015 premiums will likely skyrocket. That's because insurers start setting their premiums for the next year in April.

Under the current plan, open enrollment will end March 31, allowing insurers to base their 2015 rates on the risk pool of their 2014 enrollees. If the mandate is delayed and that risk pool is made up of mostly older, unhealthy people, insurers will jack up their premiums.

Also, some smaller insurers may opt to leave the market, which would also cause rates to rise, Feyman said.

"Insurers will be on the hook without the premiums from young people who aren't making use of the plan," he said. To top of page

Ok...forgetting the political aspects of the changes to our medical system (political discussions are not allowed at shtfready.com)

Are you prepping financially for much higher insurance costs in the future?

What changes, if any, are you making to prepare for more expensive medical care?

What changes, if any, are you making to prepare for lower quality, harder to get care?

[izzyscout21]

Luckily, Tricare isnt drastically changing..... Yet.

that said, i know a lot of people who just watched their premiums and deductibles skyrocket.
This is really going to slam a lot of folks.

[MegaCPC]

About half of the people I've talked to about it have already seen increased rates. Of the other half, most expect to get hit hard pretty soon. Some of the nation's best hospitals are considering the idea of not accepting O-care at all.

It's a giant shitstorm, but never let a crisis go to waste. Just another step in the overall plan. With all the bullshit going on, it will be easier to ram a single payer system down our throats.

I'm prepping for this by being the healthiest person I can be, and cutting non essential spending.

But the fact that I'm doing it because some 300 pound, Escalade driving, iPhone texting, 7 kid having, EBT swiping, 911 calling, ambulance riding, lazy, entitled fat sack of shit waste of a human being can't be bothered to not have that 5th Big Mac, pisses me off.

Sorry, rant over.

[ElevenBravo]

Obamacare sends rates soaring

Please allow me to correct your post title...

Obomacare is not socialized medicine as we see it in Canada... it is.. legalized extortion of US citizens.

EB

[bacpacker]

Luckily my company is keeping our insurance in place as is. We got hammered pretty good last year, but not much change this time.
I am working trying to improve my condition both to improve my health and as a mainline prep.

[2die4]

Hmm another government program that doesn't do what its supposed to do. Shocker.

[FL-Jeeper]

Hmm another government program that doesn't do what its supposed to do. Shocker.

Oh I'm beginning to wonder if it isn't doing exactly what it was designed to do. Drown the insurance industry so we're all forced into 'single payer', truely socialized healthcare.

From 'We must pass it so you can see what's in it!.' to 'Never let a crisis go to waste'.

Perfection.

[izzyscout21]

My inlaws just went from a $225/month premium with a $3500 deductible to $765/month with a $9000 deductible.

[bacpacker]

Jeeper you are exactly rigt IMO. This was never supposed to work and now that they've got the insurance and med industries screwed up it'll never go back to where it was.
How the hell are folks suppose to pay premiums like that and deductibles that high on top. Why bother with insurance?

[msomnipotent]

I was bracing myself for sticker shock because our enrollment period for my husband's insurance will start next week. Instead, I was shocked to find a letter today stating that everything is basically the same and no premium increase. I was wondering why until I read Stig's post. I guess I will have to wait until next year for sticker shock.

I am expecting it to be almost the same as when we suddenly lost our group health through an employer and had to join my state's high risk pool. We were paying $1,100 per month in premiums for what amounts to a catastrophic policy. They only paid 80% of the bill after we paid $5,500 PER PERSON, not family deductible, and then paid 100% after we paid (I think) $15,500 out of pocket. From everything I heard, that is the type of policy I was expecting to get with Obamacare.

Prep-wise, I am trying to get everything done that I need, but as life goes, needs keep popping up. I am putting more money aside, little by little. At least now I know we have until next year to worry about it, but I know we are going to pay through the nose for it. I'm not worried about getting quality care. I can throw a stone and hit 3 doctors and a dentist out here, and I haven't had any problems with the multitude of professionals I have seen so far. I am a bit worried about paying for it. We thought we would just tough it out and try our best not to see doctors, but when our daughter got sick you bet we didn't hesitate to take her to the doctor and get the needed prescriptions. We worried about paying later. And I thought my plan for treating my RA was a good one. I would take Prednisone, which is dirt cheap, and my leftover pain pills and muscle relaxers. When that didn't work, we had to pay $1,800 per month for Humira, which was actually a discounted price. It is normally about $2,200. We wound up using almost all of our preps until he got another job with benefits. Extra deductible money is just another allocation in my prep spending now.