Health insurance premiums for individual policies will jump by more than 30 percent and small businesses will face double-digit rate hikes for their health plans next year when most of the health care reform known as ObamaCare becomes effective, insurers and actuaries estimated Tuesday.
"There is going to be a rate shock for a lot of people," said Bill Gracey, president of BlueCross BlueShield of Tennessee, the state's biggest health insurer.
"Unfortunately, our young and healthy people may opt out of coverage because their rates are about to go way up -- as much as 62 percent for some healthy, younger males," he said.
Link: https://www.timesfreepress.com/news/2013/mar/27/insurers-predict-hike-in-premiums/
And:
In some markets,” said Aetna CEO Mark Bertolini, increases in premiums could “go as high as 100 percent. And we’ve done all that math. We’ve shared it with all the regulators. We’ve shared it with all the people in Washington that need to see it. And I think it’s a big concern.”
“Premium rate shock for 2014,” responded Bertolini, “absent subsidies and everything else, is going to be in the neighborhood of 20 percent to 50 percent. And we’re going to see some markets [and] in sub-segments in some markets go as high as 100 percent.”
Link: https://www.forbes.com/sites/aroy/2012/12/18/aetna-ceo-bertolini-get-ready-for-rate-shock-as-some-health-insurance-premiums-to-double-in-2014/
I would be interested in hearing your solutions.
The subsidies (money) that people get to offset their cost of having to have insurance just dont come from a money tree on the White House lawn. Money is taken from someone.....who is it?
Health insurance premiums for individual policies will jump by more than 30 percent and small businesses will face double-digit rate hikes for their health plans next year when most of the health care reform known as ObamaCare becomes effective, insurers and actuaries estimated Tuesday.
"There is going to be a rate shock for a lot of people," said Bill Gracey, president of BlueCross BlueShield of Tennessee, the state's biggest health insurer.
"Unfortunately, our young and healthy people may opt out of coverage because their rates are about to go way up -- as much as 62 percent for some healthy, younger males," he said.
Link: https://www.timesfreepress.com/news/2013/mar/27/insurers-predict-hike-in-premiums/
And:
In some markets,” said Aetna CEO Mark Bertolini, increases in premiums could “go as high as 100 percent. And we’ve done all that math. We’ve shared it with all the regulators. We’ve shared it with all the people in Washington that need to see it. And I think it’s a big concern.”
“Premium rate shock for 2014,” responded Bertolini, “absent subsidies and everything else, is going to be in the neighborhood of 20 percent to 50 percent. And we’re going to see some markets [and] in sub-segments in some markets go as high as 100 percent.”
Link: https://www.forbes.com/sites/aroy/2012/12/18/aetna-ceo-bertolini-get-ready-for-rate-shock-as-some-health-insurance-premiums-to-double-in-2014/
A few ways to possible reduce costs could be to open up competition across state lines, just like car or life insurance. Why should there be 50 different BC/BS companies? Another idea would be to remove insurance from the workplace. Why should someone's insurance be tied to where they work?
Also, let people pick and choose what they want covered in their insurance plan including a minimum baseline of catastrophic coverage. Why should I have to be on a plan that covers smokers, pre natal care and kids when I don't fall into that category? I should be able to pick my coverages and my rate should be based on a 49 year old man with slightly elevated chlorestoral levels. Someone younger than me and in better shape should not pay as much as I do.
Obamacare along with current HC plans are one size fits none and people are paying for stuff they will never need. Make the plans fit the needs and prices drop.
Competition among insurance companies is not the issue nor the solution.
For an undertstanding of this, look at the profit margins of insurance companies (they aren't high), but more on point, look at the costs of medical care. That is the culprit. Nothing is going to change until we reduce the cost of care, which will reduce the cost of coverage.
As for your second part, it is completely the antithesis of logic. Health insurance rates are impacted based on age, smoking, health, lifestyle, etc. 
Competition among insurance companies is not the issue nor the solution.
For an undertstanding of this, look at the profit margins of insurance companies (they aren't high), but more on point, look at the costs of medical care. That is the culprit. Nothing is going to change until we reduce the cost of care, which will reduce the cost of coverage.
As for your second part, it is completely the antithesis of logic. Health insurance rates are impacted based on age, smoking, health, lifestyle, etc.
Wrong. In almost every group plan the rates are the same for everyone regardless if they are a smoker or not. We have a work plan through Aetna and my rates are the same as someone 15 years younger than me and someone 15 years older than me that smokes and is very obese. It's one price for single people, another for a couple, and another for adding kids. Flat price, this is what you pay regardless of health considerations.
Wrong. In almost every group plan the rates are the same for everyone regardless if they are a smoker or not. We have a work plan through Aetna and my rates are the same as someone 15 years younger than me and someone 15 years older than me that smokes and is very obese. It's one price for single people, another for a couple, and another for adding kids. Flat price, this is what you pay regardless of health considerations.
A quick google search shows the above certainly isn't the norm.
You raise a good point.
I predict my hourly rate will go up by $100 next year.
Guess what I am going to do January 1, 2014
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