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1 ObamaCare's Health-Insurance Sticker Shock on Tue Jan 15, 2013 6:47 pm

SSC


Admin
http://online.wsj.com/article/SB10001424127887323936804578227890968100984.html

ObamaCare's Health-Insurance Sticker Shock

Thanks to mandates that take effect in 2014, premiums in individual markets will shoot up. Some may double..

By MERRILL MATTHEWS AND MARK E. LITOW

Health-insurance premiums have been rising—and consumers will experience another series of price shocks later this year when some see their premiums skyrocket thanks to the Affordable Care Act, aka ObamaCare.

The reason: The congressional Democrats who crafted the legislation ignored virtually every actuarial principle governing rational insurance pricing. Premiums will soon reflect that disregard—indeed, premiums are already reflecting it.
Central to ObamaCare are requirements that health insurers (1) accept everyone who applies (guaranteed issue), (2) cannot charge more based on serious medical conditions (modified community rating), and (3) include numerous coverage mandates that force insurance to pay for many often uncovered medical conditions.

Guaranteed issue incentivizes people to forgo buying a policy until they get sick and need coverage (and then drop the policy after they get well). While ObamaCare imposes a financial penalty—or is it a tax?—to discourage people from gaming the system, it is too low to be a real disincentive. The result will be insurance pools that are smaller and sicker, and therefore more expensive.

How do we know these requirements will have such a negative impact on premiums? Eight states—New Jersey, New York, Maine, New Hampshire, Washington, Kentucky, Vermont and Massachusetts—enacted guaranteed issue and community rating in the mid-1990s and wrecked their individual (i.e., non-group) health-insurance markets. Premiums increased so much that Kentucky largely repealed its law in 2000 and some of the other states eventually modified their community-rating provisions.

States won't experience equal increases in their premiums under ObamaCare. Ironically, citizens in states that have acted responsibly over the years by adhering to standard actuarial principles and limiting the (often politically motivated) mandates will see the biggest increases, because their premiums have typically been the lowest.

Many actuaries, such as those in the international consulting firm Oliver Wyman, are now predicting an average increase of roughly 50% in premiums for some in the individual market for the same coverage. But that is an average. Large employer groups will be less affected, at least initially, because the law grandfathers in employers that self-insure. Small employers will likely see a significant increase, though not as large as the individual market, which will be the hardest hit.

We compared the average premiums in states that already have ObamaCare-like provisions in their laws and found that consumers in New Jersey, New York and Vermont already pay well over twice what citizens in many other states pay. Consumers in Maine and Massachusetts aren't far behind. Those states will likely see a small increase.

By contrast, Arizona, Arkansas, Georgia, Idaho, Iowa, Kentucky, Missouri, Ohio, Oklahoma, Tennessee, Utah, Wyoming and Virginia will likely see the largest increases—somewhere between 65% and 100%. Another 18 states, including Texas and Michigan, could see their rates rise between 35% and 65%.

While ObamaCare won't take full effect until 2014, health-insurance premiums in the individual market are already rising, and not just because of routine increases in medical costs. Insurers are adjusting premiums now in anticipation of the guaranteed-issue and community-rating mandates starting next year. There are newly imposed mandates, such as the coverage for children up to age 26, and what qualifies as coverage is much more comprehensive and expensive. Consolidation in the hospital system has been accelerated by ObamaCare and its push for Accountable Care Organizations. This means insurers must negotiate in a less competitive hospital market.

Although President Obama repeatedly claimed that health-insurance premiums for a family would be $2,500 lower by the end of his first term, they are actually about $3,000 higher—a spread of about $5,500 per family.

Health insurers have been understandably reluctant to discuss the coming price hikes that are driven by the Affordable Care Act. Mark Bertolini, CEO of Aetna, the country's third-largest health insurer, broke the silence on Dec. 12. "We're going to see some markets go up by as much as 100%," he told the company's annual investor conference in New York City.

Insurers know that the Obama administration will denounce the premium increases as the result of greedy health insurers, greedy doctors, greedy somebody. The Department of Health and Human Services will likely begin to threaten, arm-twist or investigate health insurers in an effort to force them into keeping their premiums more in line with Democratic promises—just as HHS bureaucrats have already started doing when insurers want premium increases larger than 10%.

And that may work for a while. It certainly has in Massachusetts, where politicians, including then-Gov. Mitt Romney, made all the same cost-lowering promises about the state's 2006 prequel to ObamaCare that have yet to come true.

But unlike the federal government, health insurers can't run perpetual deficits. Something will have to give, which will likely open the door to making health insurance a public utility completely regulated by the government, or the left's real goal: a single-payer system.

Mr. Matthews is a resident scholar with the Institute for Policy Innovation in Dallas, Texas. Mr. Litow is a retired actuary and past chairman of the Social Insurance Public Finance Section of the Society of Actuaries.

gypsy


Moderator
I disagree! this looks like a personal opinion,presumption..
we won't know until it happens
and is fact..
something has to be tried..
I believe Healthcare act can be improved,but I like ,and most of America likes.
Obama was voted in second term,after all..

A lot of countries have this same,or close to
same healthcare, introduced by Obama, and it works for them
When we were on our cruise
we talked to many different people,from different countries
that love the healthcare they have and it is close to same as
Obama,got passed.of course there is always room for improvement..
what we have to do as people and Government
is work together for the betterment of our country..


on another note>> we got another Social Security raise


SSC


Admin
Yea I know SS got a raise big huge cost of living what 20.00 a month, whoopeee , and the people working for a living just got a 2.9% SS tax increase, you know the middle class that wasn't going to be taxed. The article is from the wsj. Did you know 2.3 trillion of the Nat. debt is money borrowed from Social Security, hmmmmm wonder how that will get paid back before people need to draw the benefits.

4 Re: ObamaCare's Health-Insurance Sticker Shock on Tue Jan 15, 2013 10:27 pm

gypsy


Moderator
with Obama taxes.middle class will surge,,a little help is better than none..our president is working for us the middle class,and the poor,, sometimes even in now,,the good guys shin.
The republicans,especially congress don't look good.. I will continue to fight for People!
People strong,is what makes America Strong..

5 Re: ObamaCare's Health-Insurance Sticker Shock on Tue Jan 15, 2013 10:29 pm

SSC


Admin
Can't be strong if you are broke.

6 Re: ObamaCare's Health-Insurance Sticker Shock on Tue Jan 15, 2013 10:35 pm

runawayhorses


Owner
You very well could be fighting for the wrong party Gypsy, the good party could be the Republicans. The good Americans may be on the Republican side not the Democrats. We already know the democrats out number the Republicans in jails and have violated more laws, so its quite possible the real good Americans are the Republicans. Something to think about..

7 Re: ObamaCare's Health-Insurance Sticker Shock on Tue Jan 15, 2013 10:43 pm

SSC


Admin

8 Re: ObamaCare's Health-Insurance Sticker Shock on Wed Jan 16, 2013 12:05 am

gypsy


Moderator
no Tyler they aren't, read all the info,republicans have never been for the working class, or the poor..

9 Re: ObamaCare's Health-Insurance Sticker Shock on Wed Jan 16, 2013 12:10 am

runawayhorses


Owner
Well Bill Clinton committed adultery and Obama was caught smoking marijuana, so you do the math.

10 Re: ObamaCare's Health-Insurance Sticker Shock on Wed Jan 16, 2013 12:26 am

gypsy


Moderator
HA HA REALLY!! The formula is for the United States,not personal screw ups..Bill Clinton is still considered the best,most respected world wide,President.
Obama is coming on up! :) Thank You!

11 Re: ObamaCare's Health-Insurance Sticker Shock on Wed Jan 16, 2013 12:37 am

SSC


Admin
Bill Clinton has a tarnished reputation and Obama is a slap in the face of true Americans who still believe in freedom of speech, and the other ammendments, can't wait till tomorrow to see Obama's 19 new gun laws and what he will pull with executive power. Wonder what rights he will take away next, the Internet is now fair game for him, cell phones, your bank account all can be accessed by the Feds without your permission. We no longer live in a free country, we have a dictator in chief, but this is what you wanted, remember you voted for him, and for chrissakes get off Bush, you can't keep blaming him for Obama failures.Accept responsibility people like you created this.

12 Re: ObamaCare's Health-Insurance Sticker Shock on Wed Jan 16, 2013 12:51 am

runawayhorses


Owner
Personal screw-ups are a reflection of how the president thinks and behaves and a bigger reflection on how the world perceives us. If they run there own lives that way it's highly probable they will run the country that way. There responsibility and "Judgement" is questionable. Obama will not be considered a great president in our history because too many mistakes have already been made, there is nothing to support that his presidency will be considered a success, in fact just the opposite. This country needs to get back on its feet and Obama is not making the grade, so I suggest we buckle-down and wait until the next election when we have the possibility of getting someone in there that is more qualified.

The Democrats have not shown the world they know what they're doing, they have contributed to the nations problems by refusing to address the issues in such a way that will fix our nations problems because they don't know how or do they have the answers. The Democrats have struck-out, so next election another batter will come to bat and for the sake of our nation we must pray its a Republican that knows what hes doing, and has real answers and solutions to our problems. The democrats have not shown us that and are losing creditability everyday by the world and more importantly by the citizens of this great nation.

This country must come together again as one and battle these problems together, and with the Republican party we stand the best chance of that happening. So in closing I would like to say God bless America, and God bless all Republicans, and may we all pray that the Democrats see the destruction of there ways and put an end to it so this country can start to rebuild again.

Bless us all..

13 Re: ObamaCare's Health-Insurance Sticker Shock on Wed Jan 16, 2013 1:15 am

gypsy


Moderator
of course so we consider you, me, and the complete population!!

Bill Clinton is already considered a good president,Obama is next,, both should be put on mt Rushmore!! now smoke that in your pipe LOL

14 Re: ObamaCare's Health-Insurance Sticker Shock on Wed Jan 16, 2013 2:14 am

gypsy


Moderator
[quote="runawayhorses"]Personal screw-ups are a reflection of how the president thinks and behaves and a bigger reflection on how the world perceives us. If they run there own lives that way it's highly probable they will run the country that way. There responsibility and "Judgement" is questionable. Obama will not be considered a great president in our history because too many mistakes have already been made, there is nothing to support that his presidency will be considered a success, in fact just the opposite. This country needs to get back on its feet and Obama is not making the grade, so I suggest we buckle-down and wait until the next election when we have the possibility of getting someone in there that is more qualified.

The Democrats have not shown the world they know what they're doing, they have contributed to the nations problems by refusing to address the issues in such a way that will fix our nations problems because they don't know how or do they have the answers. The Democrats have struck-out, so next election another batter will come to bat and for the sake of our nation we must pray its a Republican that knows what hes doing, and has real answers and solutions to our problems. The democrats have not shown us that and are losing creditability everyday by the world and more importantly by the citizens of this great nation.

This country must come together again as one and battle these problems together, and with the Republican party we stand the best chance of that happening. So in closing I would like to say God bless America, and God bless all Republicans, and may we all pray that the Democrats see the destruction of there ways and put an end to it so this country can start to rebuild again.

Bless us all..[/quote LOLClinton did check back

15 Re: ObamaCare's Health-Insurance Sticker Shock on Wed Jan 16, 2013 10:45 am

SSC


Admin
Mt Rushmore OMG you are watching to many daytime talk shows...

16 Re: ObamaCare's Health-Insurance Sticker Shock on Wed Jan 16, 2013 1:06 pm

gypsy


Moderator
nope my thoughts alone..of course I don't think it will happen,but
Obama being the first Black President, maybe he deserves to be on Rushmore..

17 Re: ObamaCare's Health-Insurance Sticker Shock on Wed Jan 16, 2013 1:21 pm

runawayhorses


Owner

No Obama will not get on it for sure. That picture above is what it might have looked like. lol

According to the U.S. National Parks, there's simply no room for any more additions to Mount Rushmore. Besides, the rock that surrounds the sculpted faces is not suitable for additional carving. David Barna, chief spokesman of the National Park Service, informs me that when Gutzon Borglum, the sculptor of Mount Rushmore died in 1941, his son Lincoln Borglum closed the project and indicated that no more carvable rock existed.

http://www.huffingtonpost.com/bill-lucey/obama-mount-rushmore_b_2161089.html

18 Re: ObamaCare's Health-Insurance Sticker Shock on Wed Jan 16, 2013 1:43 pm

gypsy


Moderator
haha well I really never thought it would.
I still think he deserves it..

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