Obamacare: Covered California's health plan prices soar

[alp227]

Source: San Jose Mercury News

SACRAMENTO -- Ending two straight years of average 4 percent increases, the state's health insurance exchange on Tuesday stunned consumers by announcing a 13.2 percent statewide average rate increase for those who buy 2017 health care plans through Covered California.

...

"We've known for a long time that 2017 would be a transition year,'' Peter Lee, the exchange's executive director, said during a late morning press conference. "We are seeing that happening, just as we predicted."

He blamed the increases on several factors, including rising prescription drug and health care costs, and the end of two federal "risk mitigation'' programs created under Obamacare, which expire in 2017.

The programs protect insurers from major, unexpected losses from offering health insurance on the exchanges.

Read more: http://www.mercurynews.com/health/ci_30144878/obamacare-covered-californias-health-plan-prices-soar

[George II]

1. What will the increase for private insurance be?

[Cryptoad]

12. that is private insurance,,,,,, ACA is not insurance just a market place

still beats the hell out of the 30% annual increase before ACA was created....

[MadDAsHell]

26. To some extent, but those premium "savings" today had a $2 trillion implementation cost. nt

[Cryptoad]

29. Nah,,,,the data still shows an overall savings for ACA implementation

[tonyt53]

2. With more people utilizing their new healthcare, the insurers are seeing higher costs.

There will be a bubble spike in rates for a couple of years, then they will level off or possibly go back down. The insurance companies are limited to 19% EBIT by the ACA.

[yallerdawg]

4. Fixed profit margin.

If you increase the prices of all covered products and services, doesn't that profit actually increase in dollar value, too?

19% of 2 million is better than 19% of 1 million, for example.

Where's the incentive to "cut costs" I wonder?

[tonyt53]

5. That incentive was relatively short-lived.

[bemildred]

3. Not for profit is the only way to go. nt

[cstanleytech]

8. Except how do you enforce that on the companies that make the drugs and the medical supplies?

[bemildred]

9. You make them open their books is what you do.

The Congress can make them do whatever it likes, that is why they are so anxious to buy it.

[cstanleytech]

10. Congress does have limits though according to the constitution so how

do you get around those limits without violating the constitution?

[bemildred]

15. It is definitely constitutional for the Congress to make them open their books.

It's called a subpoena.

[cstanleytech]

16. That's assuming the courts don't quash it. nt

[bemildred]

17. No shit. nt

[Red Mountain]

19. Single buyer pays what they think it is worth

Lots of leverage for the buyer.

[cstanleytech]

20. And you force them to sell only to the single buyer how?

[andym]

24. Blue shield is not for profit in CA-- one of the most expensive

insurers. SMH.

[MadDAsHell]

27. How do we get there when the ACA doubled down on the existing for-profit system? nt

[Hoyt]

30. Not-for-profit Kaiser is big in California and I bet their premium is about average. I had it for

awhile, and liked it as far as care, but it wasn't a lot cheaper than competitors. If I quit working again, will probably go back to Kaiser. Those who like choice of physicians, pharmacies, etc., won't be happy.

[bemildred]

33. There are a whole lot of people who are not happy now. What about them? nt

[Hoyt]

35. Truthfully, most folks are going to gripe about healthcare no matter what.

[bemildred]

36. Actually, I can remember when the "Health Care" business had a much better reputation.

But that was back before the for-profit Insurance rackets got involved, and MDs were themselves business people and not employees. And back then it was called "Medicine" or being as Doctor, and not "Health Care".

Now what we have is boatloads of "specialists", all very expensive, none of whom knows all about you, and none of whom takes any responsibility for outcomes.

Go watch "Marcus Welby, MD" sometime.

[Hoyt]

37. I watched every episode of Marcus Welby, even had a doc like him.

You are right, docs aren't like that anymore and never will he unless you can afford a concierge type doctor. But that costs a good bit and if you get really sick, they aren't much help.

[kimbutgar]

6. But I seem to recall that that insurance commissioner in the state needs to approve these hikes

I don't think that will happen. They might get granted a small increase though.

That said, my Mother in law who lives in Arizona said 4 health care companies are leaving the state. She is on Medicare but I see the rethugs in the state blaming the affordable care act.

[Sancho]

7. it's becoming obvious...

if the US wants either single payer or universal health care or some equivalent, then...

1.) health care workers will have to make less - likely 1/3 to 1/2 today's salaries
2.) some hospitals will have to be truly non-profit - and be funded by taxpayers or charity
3.) drugs and new technologies will have to be competitively priced, which may mean less patent protections for intellectual property
4.) public health care will likely be more inconvenient (there won't be a drug store and radiology clinic on every corner)

No matter what the "system" used to funnel money to pay for healthcare, the US is too expensive. Changing the system won't change the bottom line in most cases. If we want everyone covered, there will be some in the system who will be very unhappy even though it may be best for everyone in the long run.

[ForPeace]

14. Or we could do away with health insurance companies

We pay way more than other countries per capita because we have to support insurance companies on the back of the health care industry.

[andym]

25. These are the most serious problems

Heathcare costs too much because we pay the providers and the supporting industries so much money.

[Skittles]

11. LOL

you'd have to be an idiot to not see that coming

[Qutzupalotl]

13. We need at least a public option

to put downward pressure on premiums.

[elmac]

18. Medicare for all is the only answer

as long as for profit is involved Obamacare will fail.

[Red Mountain]

21. Anybody ever seen an estimate of what a monthly medicare

premium might be?

I haven't.....just curious.

[cynzke]

22. Try Medicare.gov.

https://www.medicare.gov/your-medicare-costs/part-a-costs/part-a-costs.html

[Hoyt]

31. That's not what Medicare would cost a 40, 50 year old, etc. While I'm for Medicare, especially as

a public option, I will bet you that premium will not be a lot less than private insurers -- Maybe 6 to 8% less at best. And like Medicare right now, you will still have insurance companies processing claims, making coverage decisions, answering patient questions, etc.

Now, if we make some serious changes like cutting provider payments to the bone; limiting diagnostic testing, drug choices, procedures that aren't likely to help, etc.; continuing copays; and more. I don't think most people have that in mind when they talk of Medicare for all, although we should be if we want lower costs. No matter what we do, it's never going to be cheap and people will still gripe.

[forest444]

23. Single-payer, now more than ever.

But it'll take a near-total collapse of our health care system to force the public to understand that.

[bemildred]

34. I think "near total collapse" is a good description of where we are now.

I'm 71, one of my greatest ambitions at this point in my life is to have nothing to do with our "health care" system. I have seen it in action and it does not have jack shit to do with health. It is all about how much can be extracted from your wallet and from the government (which is also your wallet).

[kcjohn1]

28. Only way to bring down costs

Is for the government through its purchasing power regulate. Imagine market place where 300 million people can negotiate on drug prices? Right now Pfizer can tell pound sand because because each insurer is miniscule. Same with hospitals and doctors.

[Hoyt]

32. Actually, right now there is more drug price negotiations with private insurance than Medicare.

And, unless one is willing to tell a drug manufacturer, we will not approve your product at that price, the negotiations aren't going to save tons of money. Fact is, out of the $3 Trillion we spend annually, drugs are only $300 Billion. And almost every drug helps to reduce hospital costs, rehab costs, palliative care, etc., in other areas.

It will take a long time to make all the necessary changes work, but might as well start the transition. A Public Option is probably the best place to start.