ObamaCare Plans Come on the Market October 1st. Get Ready

Bamabuzzard · Sep 18, 2013

92tide said:
i think the chart above is for individual premiums only. when i was on a company plan in my previous job (2005-2011) my rates went up every single year. in the job prior to that (98-2003), it was the same case.

Our rates normally go up on average 2%-3%/year. It went up 23% this year. Our agent has "shopped around" and the best we could get was a premium that is 23% higher than last year.

Tider@GW_Law · Sep 18, 2013

92tide said:
this chart is the creation of a republican house committee. i'm betting that this is nowhere near close to being what is really going to happen.

everything i have seen in my research shows my premiums (individual market) in Georgia going down anywhere from 30-50% (conservative estimate on my part) depending on the level of coverage. they show an increase of 61%-100%.

That chart is fairly ridiculous and assumes the unlikely perfect health scenario for current medical underwriting on a young individual.

If you're age 40+ and have an average medical risk profile, your premiums on the individual market will go down in all or almost all states. In the small group market, the comparison is more straightforward but requires an apples-to-apples comparison.

Where there is an increase because you are getting more coverage from the product, it's misleading to characterize it as if one is simply paying more for the same thing - but I'm not sure Americans care about an independent analysis of facts before making up their minds any more.

92tide · Sep 18, 2013

Tider@GW_Law said:
That chart is fairly ridiculous and assumes the unlikely perfect health scenario for current medical underwriting on a young individual.

If you're age 40+ and have an average medical risk profile, your premiums on the individual market will go down in all or almost all states. In the small group market, the comparison is more straightforward but requires an apples-to-apples comparison.

Where there is an increase because you are getting more coverage from the product, it's misleading to characterize it as if one is simply paying more for the same thing - but I'm not sure Americans care about an independent analysis of facts before making up their minds any more.

yeah, i saw one the other day (i think it was the georgia insurance commissioner) where he used the absolute lowest rate for a bare bones catastrophic plan for a 25 year old non-smoking male as his comparison basis to claim that all of the state's rates were going to skyrocket 198%.

i guess this is up there with death panels, jack booted thugs breaking down doors and forcing you to buy insurance at gun point, and helpless christian girls being force fed contraceptives by obama's minions.

this is, of course, just the humble opinion of one of obama's minions

Tider@GW_Law · Sep 18, 2013

Bamabuzzard said:
Our rates normally go up on average 2%-3%/year. It went up 23% this year. Our agent has "shopped around" and the best we could get was a premium that is 23% higher than last year.

I'd be interested to know he kept it to 2-3% per year (healthy group overall?). That's a very good rate increase.

Inflation in the healthcare sector generally runs about 9% from year to year, depending on your state. The rates insurers pay to providers generally runs about a 7% increase from year to year. So, ceteris paribus, your average insurer would be losing money on a rate increase below 7%. That being said, the last few years have been an anomaly in health care costs, though that impacts the 9% number.

Bamabuzzard · Sep 18, 2013

Tider@GW_Law said:
I'd be interested to know he kept it to 2-3% per year (healthy group overall?). That's a very good rate increase.

Inflation in the healthcare sector generally runs about 9% from year to year, depending on your state. The rates insurers pay to providers generally runs about a 7% increase from year to year. So, ceteris paribus, your average insurer would be losing money on a rate increase below 7%. That being said, the last few years have been an anomaly in health care costs, though that impacts the 9% number.

It's not across the board but we have a significant number of young people but we also have a lot in their 30-40's. We have a few in their 50's and a handful of 60's.

Tider@GW_Law · Sep 18, 2013

BamaPokerplayer · Sep 18, 2013

Here is a snapshot of some of the happenings with Obamacare.
Medicaid won’t be part of the exchange, no subsidy for you.
Private exchanges = No subsidy eligible
Public exchanges = Subsidy eligible

http://www.forbes.com/sites/bruceja...le-states-grapple-with-obamacare-marketplace/

Obamacare Exchanges Flail While Private Exchanges Flourish

http://www.dailyfinance.com/2013/06/22/obamacare-exchanges-flail-while-private-exchanges/

Young Invincibles' Better Off Without ObamaCare

http://news.investors.com/081513-667591-obamacare-a-bad-deal-for-millions-of-young-people.htm

No more multiemployer plans bad for Unions.

http://www.forbes.com/sites/theapot...ds-to-be-repealed-if-union-demands-arent-met/

Obama's Union Allies Want a Big Obamacare Gift

http://origin-www.businessweek.com/articles/2013-09-14/obamas-union-allies-want-a-big-obamacare-gift

Investors see four million signing up for Obamacare in 2014

http://news.yahoo.com/investors-see...71--sector.html;_ylt=A2KJ3CRCETpSzmQAiIPQtDMD

Bodhisattva · Sep 18, 2013

Tider@GW_Law said:

Heh. Obama thinks he's a doctor, and the cartoonist has Democrats depicted as elephants.

BamaPokerplayer · Sep 18, 2013

Bodhisattva said:
Heh. Obama thinks he's a doctor, and the cartoonist has Democrats depicted as elephants.

Tider@GW_Law · Sep 18, 2013

BamaPokerplayer said:
Here is a snapshot of some of the happenings with Obamacare.
Medicaid won’t be part of the exchange, no subsidy for you.
Private exchanges = No subsidy eligible
Public exchanges = Subsidy eligible

http://www.forbes.com/sites/bruceja...le-states-grapple-with-obamacare-marketplace/

Obamacare Exchanges Flail While Private Exchanges Flourish

http://www.dailyfinance.com/2013/06/22/obamacare-exchanges-flail-while-private-exchanges/

Young Invincibles' Better Off Without ObamaCare

http://news.investors.com/081513-667591-obamacare-a-bad-deal-for-millions-of-young-people.htm

No more multiemployer plans bad for Unions.

http://www.forbes.com/sites/theapot...ds-to-be-repealed-if-union-demands-arent-met/

Obama's Union Allies Want a Big Obamacare Gift

http://origin-www.businessweek.com/articles/2013-09-14/obamas-union-allies-want-a-big-obamacare-gift

Investors see four million signing up for Obamacare in 2014

http://news.yahoo.com/investors-see...71--sector.html;_ylt=A2KJ3CRCETpSzmQAiIPQtDMD

Medicaid is generally no premium-share to the patient, so subsidies would be pointless because there is nothing to subsidize. You would be subsidizing the state.

Private exchanges are just a way for an employer to present plan options to its employees, providing a defined contribution towards the purchase of that coverage (as opposed to the traditional defined benefits model). These are in fact subsidized via the employer tax deduction for the share of premiums they pay for employees.

Not sure what you're trying to say.

BamaPokerplayer · Sep 18, 2013

Tider@GW_Law said:
Medicaid is generally no premium-share to the patient, so subsidies would be pointless because there is nothing to subsidize. You would be subsidizing the state.

Private exchanges are just a way for an employer to present plan options to its employees, providing a defined contribution towards the purchase of that coverage (as opposed to the traditional defined benefits model). These are in fact subsidized via the employer tax deduction for the share of premiums they pay for employees.

Not sure what you're trying to say.

I was just defining the two at the top. It looks like the early action is on private exchanges with less red tape.

BamaPokerplayer · Sep 18, 2013

GW, so far what my company is seeing is employers all going to high deductible plans. Do you think this trend will continue? Could it make health insurance more like actual insurance in the end?

seebell · Sep 18, 2013

If you l

BAMAFEVER50 · Sep 18, 2013

Tider@GW_Law said:
Medicaid is generally no premium-share to the patient, so subsidies would be pointless because there is nothing to subsidize. You would be subsidizing the state.

Private exchanges are just a way for an employer to present plan options to its employees, providing a defined contribution towards the purchase of that coverage (as opposed to the traditional defined benefits model). These are in fact subsidized via the employer tax deduction for the share of premiums they pay for employees.

here is the decision I have to make in the next week. I am an independent sales rep (1099) and receive medical insurance fom my wife. She starts a new job next week and the insurance premium is expensive ($650 family). I'm trying to figure out if I just bite the bullet with this or do I shop out this Obamacare. My biggest concern with plans like individual blue is rate hike with no merit.

Tider@GW_Law · Sep 18, 2013

BamaPokerplayer said:
GW, so far what my company is seeing is employers all going to high deductible plans. Do you think this trend will continue? Could it make health insurance more like actual insurance in the end?

It could. Yes, companies have been going toward high deductible + HSA plans for years now. This shouldn't be surprising given that even in a good year the % increase in medical losses to a health plan will exceed the average company's % increase in revenue.

If a company doesn't want to fork over 5+% (assuming the best) more annually on health insurance, there are only a few options, such as skimpier benefits, skimpier networks, higher employee premium-share, self-insure + stop-loss, and/or enter into a co-employment arrangement. I didn't include changing carriers, because that will only work a couple times and can be more trouble than it's worth.

Tider@GW_Law · Sep 18, 2013

BAMAFEVER50 said:
here is the decision I have to make in the next week. I am an independent sales rep (1099) and receive medical insurance fom my wife. She starts a new job next week and the insurance premium is expensive ($650 family). I'm trying to figure out if I just bite the bullet with this or do I shop out this Obamacare. My biggest concern with plans like individual blue is rate hike with no merit.

I'm not sure what you mean by "rate hike with no merit." I would start from the point of finding the difference in premium between your wife's family coverage and her premium for self-only coverage. Look at those exchange products that come in at or below that difference (after you factor in whatever subsidy you might get towards its purchase) and determine whether they meet your coverage needs. If you have kids, are middle-aged or older, and a decent income, the $650 may be your best bet.

BamaPokerplayer · Sep 18, 2013

Tider@GW_Law said:
It could. Yes, companies have been going toward high deductible + HSA plans for years now. This shouldn't be surprising given that even in a good year the % increase in medical losses to a health plan will exceed the average company's % increase in revenue.

If a company doesn't want to fork over 5+% (assuming the best) more annually on health insurance, there are only a few options, such as skimpier benefits, skimpier networks, higher employee premium-share, self-insure + stop-loss, and/or enter into a co-employment arrangement. I didn't include changing carriers, because that will only work a couple times and can be more trouble than it's worth.

I hate to bug you but one more question. We essentially give our clients two HSA accounts the normal one everyone thinks about and one linked to investments. The Investment HSA has really given a lot of our clients a massive cushion for medical expenses. Do you think the government will allow us to keep linking HSA to investments or is it too much of a good thing?

seebell · Sep 18, 2013

BAMAFEVER50 said:
Tider@GW_Law said:

Medicaid is generally no premium-share to the patient, so subsidies would be pointless because there is nothing to subsidize. You would be subsidizing the state.

Private exchanges are just a way for an employer to present plan options to its employees, providing a defined contribution towards the purchase of that coverage (as opposed to the traditional defined benefits model). These are in fact subsidized via the employer tax deduction for the share of premiums they pay for employees.

here is the decision I have to make in the next week. I am an independent sales rep (1099) and receive medical insurance fom my wife. She starts a new job next week and the insurance premium is expensive ($650 family). I'm trying to figure out if I just bite the bullet with this or do I shop out this Obamacare. My biggest concern with plans like individual blue is rate hike with no merit.

Click to expand...

I would shop. Most insurance companies/exchanges will post plans and rates on this October 1st. We don't know what's out there but we will on October 1st. I have individual BCBS Classic Blue and my rates haven't gone up in 3 years, which is a aberration based on what others have posted.

In Alabama go to healthcare.gov which is the federal exchange.

I was responding to BamaFever's post. Sorry for any confusion.

Tider@GW_Law · Sep 18, 2013

BamaPokerplayer said:
I hate to bug you but one more question. We essentially give our clients two HSA accounts the normal one everyone thinks about and one linked to investments. The Investment HSA has really given a lot of our clients a massive cushion for medical expenses. Do you think the government will allow us to keep linking HSA to investments or is it too much of a good thing?

The investment-type HSAs can be a headache for some employers to offer so you don't see a lot of them (e.g., portability + employer-sponsored broker's fees), but I think they will be fine so long as not too many people abuse it and get caught. HSAs are already under pressure in some quarters as a tax shelter though.

gmart74 · Sep 18, 2013

The same problem exists before or after Zerocare- healthcare is too expensive in this country.

ObamaCare Plans Come on the Market October 1st. Get Ready

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