Skip to comments.Health Insurers Raise Some Rates by Double Digits
Posted on 01/06/2013 1:33:22 AM PST by Brad from Tennessee
Health insurance companies across the country are seeking and winning double-digit increases in premiums for some customers, even though one of the biggest objectives of the Obama administrations health care law was to stem the rapid rise in insurance costs for consumers.
Particularly vulnerable to the high rates are small businesses and people who do not have employer-provided insurance and must buy it on their own.
In California, Aetna is proposing rate increases of as much as 22 percent, Anthem Blue Cross 26 percent and Blue Shield of California 20 percent for some of those policy holders, according to the insurers filings with the state for 2013. These rate requests are all the more striking after a 39 percent rise sought by Anthem Blue Cross in 2010 helped give impetus to the law, known as the Affordable Care Act, which was passed the same year and will not be fully in effect until 2014. . .
(Excerpt) Read more at nytimes.com ...
Shocking...but expected. Since there’s no pay raise in store to cover the rise....it all comes out of your pocket. So you have less money to spend on other things. It starts to train you to question each purchase (you probably don’t buy magazines at the grocery anymore...you probably go an extra 4k miles on tires that ought to be replaced...you probably put off a new car purchase for an extra year). So it hurts the economy and we simply shake our heads.
All going as planned.
This is what Obama planned! He wants rates so high people won’t/can’t buy it so they’ll have to use the insurance exchange in each state.
Since so many states refuse to set them up and won’t have to because the Democrat law makers screwed up and didn’t make it mandatory for the states, I expect that in 2014 he’ll go for broke and go full NHS. If they get back the House in 2014, it’s a done deal. That, and confiscation of guns.
HIP was trying for 41% in NY. WTF?
Simple solution is to get rid of medical insurance companies. Fat chance of that happening.
Obamacare — mugged by reality.
“Health insurance companies”
Are they? Or are they “investment” companies.
You and Obama think alike.
You’d do better by removing the lawyers from the situation.
Now would be a good time for Republicans to up tort reform in. Say it will save hundreds of billions of dollars. Have a big press conference, put out ads and force the Senate to say no.
Then defund Obamacare because it costs too much. Pillory the lawyers on the left. They went after business’s we should go after the lawyers.
Tried to explain to people that this was going to happen.
They would say “Healthcare is a good thing”. or I’m for healthcare. Simplistic fools.
When I pointed out that the day after that damn bill was approved, Healthcare insurer stocks went up an average of 4-5% and continue to rise, I asked them again..”Who do you think made out on this deal?” Simplistic fools.
I’m so flippin disgusted with people that fail to do even the most modest of reading or research into what the government is doing. Like talking to the wall.
I agree with your strategy however with doofuses like Brian Williams as the gate keeper in the lame streams media, it will get no airplay plain and simple. The 4th estate has become one of Oboingo's columns and they are complicit in all of his transformation efforts. How do we defund them, I have no other thoughts as to making them change to survive their failed model.
Actually, sakic is correct.
Willing buyer, willing seller is the only real solution at this point.
Insurance companies are able to be directed to cover anything government directs them to cover - and then let “the rich” pay - that is, anyone who can afford the new cost of their policies.
They are an anachronism and a mere extension of government at this point.
Under the willing buyer/seller scenario you’d be asked “it costs this much, do you want to buy it?”
Under the scenario you mock you’ll be told “Wait in line and maybe you’ll get it”
As more and more people can only buy what they need and not what they want, they will begin viewing the people that can buy what they want and not just what they need as the evil rich.
WINNING rate increases??? Sorry NYT, in a free market, a seller doesn't WIN a rate increase. He may CHARGE a rate increase, but in a free market, a buyer can simply find another supplier who doesn't charge as much.
.......Oh, wait!!! We now have Obamacare. I guess free market rules may no longer apply. The NYT may be right after all. One does WIN a rate increase when a government panel allows the WIN.
Wow - it's like you're watching my purchases over my shoulder. There are others, but you've pretty well captured it.
Meanwhile, the 47% will be entirely unaffected by any rate increases because they will never see the bill.
This was inevitable. Republicans should be working very hard right now to have ready a workable plan to replace this mess, as will become necessary when costs continue to explode.
The left just wanted to ‘win’ this issue, irrespective of what the details were. It’s always a ‘stick it to you’ contest with them, and there is always a villain they’re targeting. They knew that the only way to get a bill through was to make back room deals first, and there are plenty of these in this monstrosity of a bill.
People don’t even know what insurance is anymore. They think they are buying a maintenance plan where everything little thing is supposed to be payed by somebody else. Somebody else = evil corporations. A large majority of Americans are TV addicted, celebrity worshipping fools and a collapse and Civil War is well deserved.
Obama does not want to get rid of health insurance. He wants a different form of it. Before health insurance our healthcare system was far better.
Another excellent idea.
In all fairness the cost of premiums is so high now that people do feel like they should get something for the ridiculous rates charged.
Now I agree insurance should only be for unforeseen events but the criminal govt has already destroyed the health system.
My small business got hit with a 42% increase. My solution? Reduced my staff by one. That more than covered the increase in premiums. I’m happy it turned out that the staff person most expendable happened to be the lone Obama voter.
California does not count and should not even be mentioned. California is one of a few foreign nations that happen to be included in the United States.
And by law you have to get it, so if you're in line and can't afford it we'll "tax" you until we take everything you have left.
True, most people will try to get what they can afford.
I really don’t understand how insurance companies would think this is wise. Maybe my own thinking is too simplistic and am speaking out of ignorance (forgive in advance then) =
If I can’t afford your insurance anymore- I’d have to go with a cheaper option which I suppose could be Obamacare right?
How will insurance companies win if they lose a bunch of customers to Obamacare? I’m confused. Common sense says they’d compete with better prices and service for your business.
Another thing that is happening is that many companies and their employees do not make enough to pay higher rates for their current health plans because of all the Obama Deathcare mandates that insurers are required to cover, so, the employers change plans to far higher deductables and copay rates.
Our doctor copays used to be 35 dollars, now we pay 100 dollars and they pay 35 dollars.
Sad part is that we pay more for the insurance now out of the paycheck.
What a friggin’ nightmare. I didn’t get to keep my plan or my doctor. She quit.
“Particularly vulnerable to the high rates are small businesses and people who do not have employer-provided insurance and must buy it on their own. “
Hey that’s excellent. Obama needs this constituency destroyed anyway. He needs as many people as possible dependent on government.
Insurance is there with the idea that it is not supposed to be used unless absolutely necessary. People pay a little each month for certain services, that when used, cost far more then what you payed in, but the amount payed in by millions of others covers the cost. You were still expected to pay for something.
But now a nation full of people that lived unhealthy lives, and saved nothing, are sucking the pot dry and think insurance is a “take care of me 24/7 for the little I actually paid in” subscription service.
Yes, too, too true. Insurance is for catastrophic incidents that are infrequent occurrences. Not for everyone’s condoms and aspirin.
The people are the govt., or at least were at one point.... So when it collapses - given it is a consequence of decades of voter stupidity (not just the past 4 years) - know that all the grannies crying over their lost Social Security checks are the ones who also caused it. For all the bitching about the Democrats I see on this board people need to find a mirror so they can point the finger of blame properly. It is the consequence of decades of affluence, Affirmative Action dumbing down, and TV fostered ignorance.
re: “How will insurance companies win if they lose a bunch of customers to Obamacare? Im confused. Common sense says theyd compete with better prices and service for your business.”
I make no claim to be an insurance expert, but I believe the answer to your question is that private health insurance companies, in order to not only remain solvent and profitable, must charge their customers the REAL cost of what has been mandated to them by the government.
Obamacare, on the other hand, simply tells the doctors/hospitals/pharmaceuticals, etc. WHAT the government is willing to pay and WHAT they MUST accept as payment.
In other words, the government can undercut what private companies charge every time because the government is not interested in competition - just control. The more people who leave the private insurance companies, the more who will come under Obamacare - the more the control. See how this works? It is diabolical - or in laymen’s terms: EVIL.
Surprise, surprise! You actually have to pay for things that are mandatory increases in benefits.
Insurance companies simply adjust rates to pay for the increased benefits. They aren’t evil, just adjusting their income to cover their expenses.
Insurance companies will insure a burning barn worth $100,000 if they can charge a premium of $100,000 + admin costs of 10-35%.
With govt-enforced mandates on service and the move toward govt-enforced controls on premium costs, how can there be competition? There can only be competition in free markets.
The health insurance industry has not been a truly free market for a long time (govt enforced coverage mandates within states and no ability to cross state lines to purchase coverage from a company whose premiums are lower because their state has fewer mandates, for example).
As others have stated, obamacare is structured to eliminate the private insurance industry. Articles like the nyt are intended to feed public outrage about greedy insurance companies raising their rates so that there will be political pressure to institute price controls on premiums.
We are on the fast track to a National HELLth Service
For me in 2013, Medicare is up 6.01%, Medicare supplement is up a whopping 16.09% and Medicare D is up an even more whopping 22.52%.
I’d be interested in the experiences of other FReepers if you’d care to share.
Some people are too stupid to understand the more the government at their insistance demands an insurance company provide in services, the higher their premiums have to be to cover these services. There is no free lunch but of course in our idolcentric, TV mesmorized populace, that is never considered. So, we now have a law which guarantees a right one does not have, medical care, while at the same time the group of revolution bound targets debates how to limit or ban a constitutional given right to firearms. The whole system has been turned on its head and must be righted before the nation totally collapses.
Obama care is a "Cadillac" policy. It requires, for instance, contraceptives, abortafacients, mental health counseling, zero deductibles, etc. One of the most cost effective insurance policies, of any kind, is a high deductible policy. This puts you in control of day-to-day expenses, where you can make cost effectiveness decisions, and yet covers you for major medical expenses. It also keeps the mountains of paperwork away. It is also illegal under Obamacare. In short, it is illegal for an insurance company to "compete with better prices and service for your business".
My company here in California uses Aetna. The company gives us the bottom tier of coverage (because they’re cheap). Rates have risen 20% for the last 2-3 years. When you take a certain number of ‘potential’ customers from the equation the actuaries provide statistics show your limited growth. Therefore, they raise rates on existing customers (most providers in the state are doing this so a new provider will not reduce your rates) to raise revenue. The company says our rate increased so your rates increase. My pay hasn’t increased in years but my taxes and medical have.
There are 139 takers (government employee, pensioner or welfare recipient) California to every 100 tax payers (see Forbes 11/25/12).
That was my plan...get rid of the insurance companies and issue government backed loans to people who actually get sick...the insurance companies could be brokers for the loans. It would be the cheapest way to provide health care for everyone and wouldn’t take 3000 agencies to run and the details can fit on one piece of paper...
Can someone please tell me what is wrong with this plan? Why can’t Congress think of this?
Thanks Brad from Tennessee.
The NYSlimes inserted a lie right into the very first sentence.
Outside of obama's minions, did anyone really believe that? We saw the same effect when everyone was forced to buy auto insurance.
“.... the lone Obama voter.”
Awesome! Reduced the staff and fixed a couple of problems.
thank you for your responses!