Skip to comments.Affordable Care Act plans pose actuarial and rate challenges for insurers
Posted on 04/26/2014 3:25:50 PM PDT by Oldeconomybuyer
With the results sure to affect politics as well as pocketbooks, health insurers are preparing to raise rates next year for plans issued under the Affordable Care Act.
But how much depends on their ability to predict how newly enrolled customers for whom little is known regarding health status and medical needs will affect 2015 costs.
Were working with about a third of the information that we usually have, said Brian Lobley, senior vice president of marketing and consumer business at Pennsylvanias Independence Blue Cross.
The health law required insurers to accept all applicants this year for the first time without asking about existing illness. That reduces what they know about customers and raises the likelihood that theyll sign sicker, more expensive members who were previously denied coverage.
(Excerpt) Read more at washingtonpost.com ...
What an absolute debacle.
If you like your insurance company you can keep your insurance company.
It is NOT insurance, so you cannot use actuarial tables. The idiots in the insurance industry supported it, so I’m not sympathetic with the complaint that they have only 1/3 of the information they normally have. They lay down with the mangiest of all possible dogs.
If I were an insurance executive I’d make some very generous assumptions about what this will cost my company. As in, whatever I calculate multiply by 3.
The ACA can be many things, but insurance it most certainly is not. So any discussion of "actuarial" elements are an exercise in extreme stupidity and ignorance.
Any program that requires coverage for pre-existing conditions (like buying fire insurance after your house burns down, and forcing the companies selling whatever you want to call the process is definitely NOT insurance.
Any human adult with an IQ over 75 SHOULD be able to understand that!
Any ‘insurance’ that wants $1300 a month with a $12k deductible is not insurance either. That is what CoveredCa quoted for me and hubby. The deductible may have even been higher I don’t remember. That is theft of our money straight to a company since there would have to be an extreme catastrophe before it would ever come into play.