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Unexpected Health Insurance Rate Shock-California Obamacare Insurance Exchange Announces Premiums
Forbes ^ | 5/24/2013 | Rick Ungar

Posted on 05/26/2013 11:24:17 AM PDT by HawkHogan

Yesterday, Covered California—the name given to the healthcare exchange created pursuant to the Affordable Care Act that will serve the largest population of insured citizens in the nation—released the premium rates submitted by participating health insurance companies for the three health insurance program categories (bronze, silver and gold) established by the Affordable Care Act, along with the catastrophic policy created for and available to those under the age of 30.

Upon reviewing the data, I was indeed shocked by the proposed premium rates—but not in the way you might expect. The jolt that I was experiencing was not the result of the predicted out-of-control premium costs but the shock of rates far lower than what I expected—even at the lowest end of the age scale.

So, why the all too popular narrative that Obamacare would mean unaffordable healthcare premium costs for so many Americans?

Setting aside the never-ending nonsense peddled by the opponents of healthcare reform, everyone from the Congressional Budget Office to numerous private actuaries have warned that premium shock could be expected to set in once the public began to see the reality of what Obamacare would mean to their pocketbooks. And yet, the only real jolt to the system being felt by these public and private prognosticators today is utter amazement over just how reasonable the California prices have turned out to be.

(Excerpt) Read more at forbes.com ...


TOPICS: Culture/Society; Front Page News; News/Current Events; US: California
KEYWORDS: california; fraud; govtabuse; healthcare; obamacare; pelosi; politics; tyranny
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I noticed this article making the rounds on Facebook. It looks like liberals are continuing to ignore all the contrary evidence in order to continue to push the "greatness" of Obamacare. I guess they are unaware of all the negative consequences of Obamacare already witnessed, such as: employers offering skimpier plans, employers cutting their employee's hours, employers cutting jobs, skyrocketing premium costs, doctors choosing to retire early, young professionals refusing to enter the medical field, etc.

Seriously, do these people live in an alternate universe?

1 posted on 05/26/2013 11:24:17 AM PDT by HawkHogan
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To: HawkHogan

I don’t believe the numbers. Let’s see all the 3 plans’ levels and costs. Farce-butt + Forbes = BS.


2 posted on 05/26/2013 11:31:48 AM PDT by carriage_hill (Guns kill people, pencils misspell words, cars drive drunk & spoons make you fat.)
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To: carriage_hill

All the numbers seem to be for a single person. What about a family of four?
The devil is always in the details..what do you get for a bronze, silver and gold?


3 posted on 05/26/2013 11:38:09 AM PDT by Oldexpat
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To: HawkHogan

It’s easy - they’ll do with ObamaCare what they did with Social Security Trust Fund. They’ll take every dime out as it comes in and NOT put aside money for future costs. Then in a few years they’ll refer to it as an ‘entitlement’... and try to ‘means test’ it.


4 posted on 05/26/2013 11:40:14 AM PDT by GOPJ (It's Gotten So Bad for Obama Fox News Changed Its Slogan to "See. I Told You So!"- Leno)
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To: Oldexpat

I’m sure the numbers that are being reported in California are being heavily manipulated, that’s why they fly in the face of every other study done on the costs of implementing Obamacare.


5 posted on 05/26/2013 11:44:08 AM PDT by HawkHogan
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To: HawkHogan

The devil is in the details. What is covered and what is the deductible? If the premium is less than $300 a month, I suspect not much is covered and the deductible is likely $5,000.


6 posted on 05/26/2013 11:44:15 AM PDT by Marcella (Prepping can save your life today. Going Galt is freedom.)
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To: HawkHogan
Lower premiums wow..

thanks to the large influx of customers as a result of Obamacare . . . For the 2.6 million Californians who will receive federal subsidies, the price is a good deal less expensive . . .

if the IRS turns over all those fines paid to skip coverage AND the federal subsidies increase? Is that how low premiums are obtained?

7 posted on 05/26/2013 11:46:04 AM PDT by WilliamofCarmichael (If modern America's Man on Horseback is out there, Get on the damn horse already!)
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To: HawkHogan
—have been calculating that it’s worth bidding low in order to gobble up market share.

This is the truth despite the source. It's the same marketing strategy cable companies, cell phone providers etc. , use-- low priced introductory offers, then they'll get you later, once you've signed the contract. And once those that are new to insurance , not having used health care services much, actually start using it, the premiums skyrocket. This Ungar is a hack trying to wlak Obama past the 2014 elections.

8 posted on 05/26/2013 11:46:14 AM PDT by gusopol3
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To: carriage_hill

Since Sebelious babe is out there solicitating for donations to fund Obama care and promotion of...that should be a huge heads up that whatever costs “they” reveal are completely phony!....double or triple the costs no matter what numbers they give.


9 posted on 05/26/2013 11:46:27 AM PDT by caww
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To: HawkHogan

Ungar appears to be the Forbes token commie lib. A lot of his pro-Kenyan articles have been posted here recently.


10 posted on 05/26/2013 11:46:27 AM PDT by FlingWingFlyer (If you think ObamaCare is a train wreck, wait until you see the amnesty bill.)
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To: Oldexpat

>>All the numbers seem to be for a single person. What about a family of four?

Why should there be rates for a family? A citizen is a citizen. Everyone should pay individually. If the purpose of ObamaCare is to distribute the costs of medical insurance across 100% of the population, then each “population unit” should pay.

Perhaps the “chilluns” can work in a factory or something to pay their mandatory health care + national debt service. It’s only faaaaaaaaaairrrrrr.


11 posted on 05/26/2013 11:47:09 AM PDT by Bryanw92 (Sic semper tyrannis)
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To: HawkHogan

There’s the ‘U’ word again! It never goes out of style with the Left.


12 posted on 05/26/2013 11:48:11 AM PDT by Jack Hydrazine (I’m not a Republican, I'm a Conservative! Pubbies haven't been conservative since before T.R.)
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To: Oldexpat

Last OMB report I heard was $20-21,000 “avg for family of 4”. Still doesn’t tell us what level and plan that is. That may be 1st year, entry level, but could rise astronomically after that.


13 posted on 05/26/2013 11:48:14 AM PDT by carriage_hill (Guns kill people, pencils misspell words, cars drive drunk & spoons make you fat.)
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To: Oldexpat

IRS example of Bronze Plan for family of four. ($20,000/year. Cheap, eh?)

http://cnsnews.com/news/article/irs-cheapest-obamacare-plan-will-be-20000-family


14 posted on 05/26/2013 11:50:13 AM PDT by Gen.Blather
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To: caww

Certainly raised a red flag for me, but the details were never given. They were scrubbed for the story.


15 posted on 05/26/2013 11:50:13 AM PDT by carriage_hill (Guns kill people, pencils misspell words, cars drive drunk & spoons make you fat.)
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To: HawkHogan

Might explain why many potential providers opted out.


16 posted on 05/26/2013 11:51:15 AM PDT by Pikachu_Dad (Impeach Sen Quinn)
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To: Pikachu_Dad

unexpected? by who?


17 posted on 05/26/2013 11:51:42 AM PDT by GeronL (http://asspos.blogspot.com)
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To: All


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18 posted on 05/26/2013 11:55:03 AM PDT by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
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To: carriage_hill

If you can find the “California Covered” PDF you’ll find details on pricing, probably more than you want; I saw it yesterday. For standard definitions and benefit comparisons of “bronze, silver, gold, platinum” you’ll probably have to go elsewhere.

I found the CA rate document again:

http://www.healthreformgps.org/wp-content/uploads/CA-rates-5-23.pdf


19 posted on 05/26/2013 12:06:42 PM PDT by steve86 (Acerbic by Nature, not Nurture™)
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To: gusopol3

I used to have Kaiser P; hardly any wait time; that will change with all the added patients.


20 posted on 05/26/2013 12:13:43 PM PDT by Rusty0604
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To: All
Without going into actual included benefits, the four "metal" levels as they call it correspond to subscribers' financial exposure levels, like this

Bronze: 60%
Silver: 70%
Gold: 80%
Platinum: 90%

So your "financial exposure level" is the 100% minus the above percentage

Naturally, premiums are least for the bronze plans and most for the platinum plans.

21 posted on 05/26/2013 12:15:42 PM PDT by steve86 (Acerbic by Nature, not Nurture™)
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To: HawkHogan

I read an article the other day that stated.....the lowest plan right now if you look on the internet is $111 but under California’s new plan for all goes to $200. That would be quite an increase.
Me thinks this author is full of BS.


22 posted on 05/26/2013 12:18:30 PM PDT by sheana
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To: HawkHogan

Well, first, the writer says that Aetna has not been a player in the California individual insurance market. Well, my wife has an individual plan, and Aetna was quoting her coverage.

As to United Health Care, they do not write individual policies, at least not in CA. They write group policies, including Medicare supplemental policies via AARP.

As to the rates, I say baloney. She has an individual Blue Cross policy with a $5,000 a year deductible on medical and a separate deductible on drugs. The monthly premium is $488. We pay nearly $11,000 a year between premiums and deductible before she gets to collect one cent. The good news is she goes on Medicare in January.

Notice there is no detail of the coverage offered under these policies. Just wait until claims start coming in and then watch how fast the premiums rise.


23 posted on 05/26/2013 12:18:56 PM PDT by CdMGuy
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To: HawkHogan
California rates will be on the low end for the entire country. California is a HMO state, I looked over the rate announcements and almost all the plans being offered are HMOs. They will all have gatekeepers and be heavily managed, and limited network.

Plus yes the benefits on the silver and bronze plan are pretty limited.

24 posted on 05/26/2013 12:19:18 PM PDT by Conservative Actuary
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To: Oldexpat
All the numbers seem to be for a single person. What about a family of four?

How old is the insured?

25 posted on 05/26/2013 12:21:51 PM PDT by Mike Darancette (Plan "B" is now Plan "A")
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To: HawkHogan

If Obamacare is so great and wonderful, why did Congress exclude themselves from it?


26 posted on 05/26/2013 12:22:26 PM PDT by Tzimisce (The American Revolution began when the British attempted to disarm the Colonists.)
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To: steve86

Thanks; saved it to HD folder. It’ll take some time to get thru and cross-reference with other states’ docs, if I can find them.


27 posted on 05/26/2013 12:23:02 PM PDT by carriage_hill (Guns kill people, pencils misspell words, cars drive drunk & spoons make you fat.)
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To: Oldexpat

Correction: it wasn’t an OMB report, it was CNS article:

http://cnsnews.com/news/article/irs-cheapest-obamacare-plan-will-be-20000-family


28 posted on 05/26/2013 12:26:03 PM PDT by carriage_hill (Guns kill people, pencils misspell words, cars drive drunk & spoons make you fat.)
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To: All

I guess that insurers are free to design their own benefit packages as long as the required (including immoral) benefits are included. Then the customer picks the insurer and the package (as has been done all along) and finally the metal level. This is in addition to completing the paperwork/online forms for the subsidy. This is going to be quite complicated for the consumer and I can see even a pretty high-info person like myself making a selection mistake and having to live with it for at least a year.


29 posted on 05/26/2013 12:26:44 PM PDT by steve86 (Acerbic by Nature, not Nurture™)
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Day 56
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30 posted on 05/26/2013 12:26:48 PM PDT by RedMDer (You are Free Republic. There are no outside influences. Just us, all of us. Please donate today!)
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To: Conservative Actuary
Plus yes the benefits on the silver and bronze plan are pretty limited.

I'm pretty sure based on reading the last few minutes that the metal level doesn't refer to what benefits are included but to what level of financial exposure the customer has.

31 posted on 05/26/2013 12:29:51 PM PDT by steve86 (Acerbic by Nature, not Nurture™)
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To: steve86

High out of pocket maximums for the lower tiered offerings.. Higher maximums than you see in most bottom end current plans. Imagine for the express purpose of having “teaser” rates.


32 posted on 05/26/2013 12:31:22 PM PDT by Arthurio
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To: HawkHogan

It is a sucker rate. Next year it will zoom


33 posted on 05/26/2013 12:32:51 PM PDT by bert ((K.E. N.P. N.C. +12 .....Obama Denies Role in Government)
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To: Conservative Actuary

Meant to add that PPO vs HMO seems fairly evenly divided to me. Depends somewhat on the region.


34 posted on 05/26/2013 12:35:03 PM PDT by steve86 (Acerbic by Nature, not Nurture™)
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To: steve86

That is what I meant by the benefits. The metal levels set up a specified actuarial value, the individual insurance plan then chooses the specific benefits that satisfy that metal level.


35 posted on 05/26/2013 12:36:32 PM PDT by Conservative Actuary
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To: Arthurio
Agree.

Here are the ten "essential" benefits all the individual and small groups plans must include:

Ambulatory patient services
Emergency services
Hospitalization
Maternity and newborn care
Mental health and substance use disorder services
Prescription drugs
Rehabilitative and habilitative services and devices
Laboratory services
Preventive and wellness services chronic disease management
Pediatric services

36 posted on 05/26/2013 12:38:24 PM PDT by steve86 (Acerbic by Nature, not Nurture™)
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To: HawkHogan

Looks like Co Pays and annual out of pocket charges are based on income. This will make sure that waiting rooms are always full of low income folks.


37 posted on 05/26/2013 12:38:52 PM PDT by Mike Darancette (Plan "B" is now Plan "A")
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To: WilliamofCarmichael

According to the comments, the individual fee and the subsidies (which we pay) add up to $1200 per month or so. Much higher than before obamacare. While it is true the individual pays less out of pocket, overall costs actually go up. For some reason, this is not mentioned in the article. Can you say agenda?, I knew you could.


38 posted on 05/26/2013 12:39:03 PM PDT by RetiredNavy ("Only accurate firearms are interesting")
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To: steve86

Even “gold” is at 4k per year out of pocket maximum. Most current Cadillac offerings are at around $500 to $1000 out of pocket maximum.


39 posted on 05/26/2013 12:43:24 PM PDT by Arthurio
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To: HawkHogan
Seriously, do these people live in an alternate universe?

Well...duhhh!

40 posted on 05/26/2013 12:44:13 PM PDT by Eagles6 (Valley Forge Redux)
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To: steve86
Silver: 70%

Actually this is only for the insured individual (age not specified) who is in the highest income bracket of 250%-400% of the Federal Poverty Level (FPL) those under 150% FPL have 94%.

41 posted on 05/26/2013 12:44:42 PM PDT by Mike Darancette (Plan "B" is now Plan "A")
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To: steve86

I wonder if standard operational definitions for the ten essential benefits are stated somewhere or if the categories are just names.

For example, a plan could include “prescription drugs” but the actual included list is so restrictive as to be useless, or no better than what Walmart offers at $4 anyway.

It’s really going to be treacherous for the consumer to make their decisions. I’m not looking forward to it. Fortunately, I do have basically full time to research.


42 posted on 05/26/2013 12:45:12 PM PDT by steve86 (Acerbic by Nature, not Nurture™)
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To: HawkHogan

This is the same state that, if you have a medical issue and cannot afford to get anything done about it (no insurance) - just go out there, live with a friend or family for a month or two, and you qualify for MediCal - and they will pick up the tab for you...

I speak from indirect experience - my brother-in-law’s own inlaws... went to visit family in California, a little over a month after arriving, his back troubles (had been having issues already - and indeed had a history of back trouble and surgery) got bad again. Having no insurance, they were worried. Family said “no problem” - he signed up for MediCal and had the surgery a couple weeks later. No question asked, other than how long have you been California... They told the truth.

Even more interesting - his mother-in-law got a surgical consult about maybe getting lap-band surgery done (she is very overweight). And found out that MediCal would pay for that too... Foot- most insurance wont do those procedures....


43 posted on 05/26/2013 12:46:22 PM PDT by TheBattman (Isn't the lesser evil... still evil?)
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To: Oldexpat
what do you get for a bronze, silver and gold?

Nothing if you're over 65.

44 posted on 05/26/2013 12:46:48 PM PDT by ladyjane (For the first time in my life I am not proud of my country.)
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To: Mike Darancette

I agree that it does not take the subsidy into account if that’s what you mean.


45 posted on 05/26/2013 12:47:34 PM PDT by steve86 (Acerbic by Nature, not Nurture™)
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To: gusopol3

You are correct. I was also surprised at how low the introductory rates were. Kind if like 0% interest on a credit card for six months, then 19.9%. It won’t last, especially when reality hits about actual costs. It also seems these are just individual premiums. If you have children, especially if you have more than one or two, paying by individual is going to be horrible.


46 posted on 05/26/2013 12:53:01 PM PDT by informavoracious (We're being "punished" with Stanley Ann's baby. Obamacare: shovel-ready healthcare.)
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To: steve86

is there any way to opt out of this?


47 posted on 05/26/2013 12:53:29 PM PDT by naturalborn
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To: naturalborn

Sure, join a union or pay a penalty are a couple of ways (actually, most unions have not been given a waiver, but they sure do want one!).


48 posted on 05/26/2013 12:56:47 PM PDT by steve86 (Acerbic by Nature, not Nurture™)
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To: Oldexpat

Boston’s “Big Dig” project: Government estimated coat $2.8 billion. Actual cost: over $14.6 billion

Nearly 7x what we wee told. Why should this be any different?


49 posted on 05/26/2013 12:58:44 PM PDT by icwhatudo (Low taxes and less spending in Sodom and Gomorrah is not my idea of a conservative victory)
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To: HawkHogan

...Unexpectedly!...


50 posted on 05/26/2013 1:00:33 PM PDT by null and void (Republicans create the tools of opression, and the democrats gleefully use them!)
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