Affordable Care Act, ObamaCare, plans pose actuarial and rate challenges for insurers, rate to skyrocket in 2015

By Jay Hancock, Saturday, April 26, 3:06 PM  -  Washington Post  -  E-mail the writers

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. 

Republicans have been sharply critical of the rule and of the many ways people can skirt it.

“We’re working with about a third of the information that we usually have,” said Brian Lobley, senior vice president of marketing and consumer business at Pennsylvania’s Independence Blue Cross. “We’ve really been combing the data to get a first look.”

At stake are price increases that buyers on the federal exchange, HealthCare.gov, and other online marketplaces will encounter when they get renewal notices this year. Forecasting success or failure could also affect whether insurers stay on the exchanges, a key pillar of the health overhaul.

The 2014 enrollment period closed at the end of March for most consumers. But carriers selling medical plans on HealthCare.gov must file initial 2015 rate requests with federal regulators in late May or June — even though they have little idea about the health and potential costs of their newly enrolled members. Deadlines also loom for state-run exchange filings.

WellPoint, the biggest player in the online exchanges, is talking about double-digit rate hikes for 2015. Such increases would give ammunition to Republican critics before the November elections.

Analysts’ expectations vary, but nobody is predicting decreases.

“We’ll see rate increases in the marketplaces, but I think it’s anyone’s guess” about what the precise changes will be, said Sabrina Corlette, project director at the Georgetown University Center on Health Insurance Reforms. “It’s like nailing Jell-O to a wall.”

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 they’ll sign sicker, more expensive members who were previously denied coverage.

At CoOportunity Health, a nonprofit carrier in Iowa and Nebraska, many enrollees scheduled medical treatments — including surgeries — as soon as possible after their coverage began Jan. 1, said chief operating officer Cliff Gold. Among the procedures were several expensive transplant operations, including heart and lung procedures that can cost more than $1 million each.

But insurers tend to receive pharmaceutical claims long before hospital bills. They are poring over these early prescription records for clues about new members’ medical status.

Pharmacy-benefit manager Express Scripts published data April 9 showing that marketplace enrollees in January and February were substantially more likely than average to have HIV infections, chronic pain, depression and other high-cost ailments.

But that doesn’t necessarily mean average costs will soar.

For one thing, insurers figured they would cover more sick patients this year and priced plans accordingly. Early pharmacy data at Independence Blue Cross, Lobley said, are “on par for what we expected.”

Even if carriers signed more chronically ill customers this year than planned, the health law includes “reinsurance” and other safety valves designed to keep high-cost members from pushing up rates.

A sign-up surge at the end of March is another reason not to rely on early claims information.

Just as the first enrollees were more likely to need immediate care, insurers think people who pushed the deadline may be healthier and younger. If so, they would balance the risk and help cover the cost of the early birds.

“It’s clear that sick people were signing up” for January coverage, said David Axene, a fellow of the Society of Actuaries working with insurers to set 2015 rates. “The question now is, were the later people healthier?”

Nobody knows. While March enrollees seem to have been younger on balance, their health status remains largely a mystery.

Blue Shield of California signed more than 50,000 people during the last two weeks of March.

“It’s still too early to draw conclusions,” said Amy Yao, Blue Shield’s chief actuary. “I have the best actuarial team in the whole country. Even with that, it’s less than 50 percent confidence” that they’ll hit the rate-setting sweet spot for 2015, she said.

It’s unclear how many of the 8 million who enrolled through the exchanges were previously uninsured. Many who did have coverage switched carriers this year, meaning their new insurers couldn’t see their health histories.

At CoOportunity Health, a start-up created with funding from the health law, every one of the 74,000 customers is new.

“It is an actuarial nightmare to try to guess what you’re going to get,” Gold said.

It’s not just member health that insurers have to think about. President Obama allowed many people to keep old plans that aren’t compliant with ACA rules. Carriers must calculate how that exception (people covered under old plans are thought to be healthier on average) affects average costs in their new policies.

Backup resources for plans with disproportionate shares of sick and expensive members will become a little weaker next year. Insurers have to factor that into their rates.

And they need to look at the big picture.

What economists call the cost trend — how high prices rise per procedure and how many procedures Americans get this year — may be the biggest variable in setting prices for 2015, experts said.

And the trend seems to be up. After several years of relatively tame increases that many tie to a sluggish economy, medical spending accelerated late last year.

Even so, the forces affecting 2015 premiums may not drive up ACA prices as much as some are forecasting. Finding that insurers have gotten discounts from select hospitals and doctors, the Congressional Budget Office recently lowered its estimate for the cost of premiums and taxpayer subsidies under the health law.

“I’m not expecting double digits like some people have predicted” for 2015 rate increases, Axene said. “I’m expecting mid-to-high single digits” — from 6 to 8.5 percent.

That would still be far higher than growth in the economy or family incomes.

Given the uncertainties that come with a major new social law, officials at Independence Blue Cross don’t think the picture will become clear until much later.

“We always viewed this as a three-year plan,” Lobley said. “We always thought there would be a lot of volatility in years one and two. We really thought 2016 would [bring] market stability in the individual market.”

Kaiser Health News is an editorially independent program of the Kaiser Family Foundation.

Related: 

2.7 Million ObamaCare Enrollees Still Unaccounted For

Aid organizations across the country were jammed with people racing to get insurance under the Affordable Care Act..

Feds prepare to take over Oregon’s health exchange

21 ACA deadline extensions, in one chart

Technorati Tags: ACA,Affordable Care Act,ObamaCare,ObamaCare Costs,Wake-Up,ObamaCare Surprises,PPACA,Insurance Exchanges,Health Insurance Providers,Kaiser

Ezekial Emanuel Is Really Looking Forward To The Demise of Insurance Companies

The Reaper Curve: Ezekiel Emanuel used the above chart in a Lancet article to illustrate the ages on which health spending should be focused. "Principles for Allocation of Scarce Medical Interventions" The Lancet, January 31, 2009 making way for death panels as part of his system and part of the ObamaCare plan!

PJ Tatler: Ezekial Emanuel, the brother of Rahm Emanuel and former health care adviser to President Obama, is just salivating at the thought of the demise of health insurance companies. Why, he’s downright gleeful.

Ezekial Emanuel, brother of Chicago mayor and former Obama staffer Rahm Emanuel, is cheerily predicting that Obamacare will bring about the death of the private insurance companies in the US. Ezekiel makes the provocative prediction in the New Republic.

Emanuel writes that Obamacare is already causing insurance companies to either die or evolve into something else. “The good news is you won’t have insurance companies to kick around much longer,” he writes.

Obamacare was not sold to the American people as a means of destroying private health insurance companies or even forcing them into turning into a different type of company. It was sold as a means of bringing insurance costs down while increasing access. It has turned out to cause about 6.2 million Americans to lose their insurance while forcing some Americans to buy insurance or pay a fine to the IRS. “If you like your healthcare, you can keep your healthcare,” President Barack Obama repeatedly promised. Emanuel’s article provides more evidence that the president was knowingly lying, and that people like Emanuel, who were close advisers while Obamacare was being written, knew that it would cause chaos for millions of Americans and their insurance.

Emanuel writes that Obamacare is already causing some medical services providers to seek exclusive contracts with employers, cutting insurance plans out but also limiting the choices available to customers.

Ezekiel has consistently predicted, after Obamacare became law, that it would kill insurance companies. While Obamacare was being debated, Democrats denied that its purpose was to destroy private health insurance companies. Emanuel claims, without providing any evidence, that Americans will be happier in the new employer-based health provider networks.

“So be prepared to kiss your insurance company good-bye forever,” Emanuel concludes at the end of the article.

About 85% of Americans were happy with their healthcare before Obamacare.

It’s really no secret that the Democrats’ plan all along was single payer. Some just aren’t willing to admit it.

Update: Emanuel appeared on Morning Joe talking about how great Obamacare is doing. He didn’t, however, mention his glee at the coming demise of the insurance companies. 

He also did not mention his creepy ‘Complete Lives System’. In 2009 Betsy McCaughey warned about Obama’s Health Rationer-in-Chief and now we are standing at the door…

Cross-Posted at AskMarion

Technorati Tags: ObamaCare,The Plan,Ezekial Emanuel,Single-Payer,Wake-Up,Big Brother,Evil,Insurance Exchanges,Health Insurance Companies,ObamaCare Surprises,IRS,Complete Lives System,Czars,Obamaland

Here comes Obama’s solution to the disastrous Affordable Care Act: National Health Care a.k.a. the Single Payer System

By: Nelson Abdullah -  Conscience of a Conservative  -  h/t to the NoisyRoom

Cancelled health insurance plans by the millions. Premiums rise 300%. Two million people enrolled in ObamaCare but most are low-income families covered under Medicaid, not the healthy, young, affulent Middle-Class families with incomes that were supposed to support the program. The so-called Affordable Care Act is already proving to be unaffordable with family deductibles averaging $10,000 or more. That means that even with the health insurance a family must pay out the first $10,000 in medical bills before the coverage starts. This plan is a disaster but it is so bad that it could not possibly be that way by accident. Even stupid people manage to do something right once in awhile. The Unaffordable Care Act was designed to fail from top to bottom.

Since the Democrats were the only ones who voted for ObamaCare they will be the only target of the expected backlash by millions of angry voters. The Democrat leaders who conceived and wrote the plan in secret, who told members of Congress they had to pass it before they could read it, are now facing the most frightening threat they have ever faced. But while conservatives are enjoying the prospect of voter revenge in the 2014 elections, only 11 months away, and the expected retaking of the Senate giving Republicans control of both houses of Congress, this may all be just a planned scenario scripted by the Marxist/Socialist leadership of the National Democratic Party. A perfect example of snatching victory from the jaws of defeat. While we watch images of a squirming and obviously uncomfortable Obama admitting that he screwed up, we may well be the ones in for the big surprise. This is because the Affordable Care Act is not the health plan that the Democrats had in mind, it was only a stepping stone to launch their valiant and heroic rescue effort to save America. And the solution to everyone’s problem will be a “new” compromise health care plan, the Single Payer System. The Single Payer System, otherwise known as National Healthcare is pure, outright socialized medicine. The following is a glossy explanation from Wikipedia that does little to explain the pitfalls of National Healthcare. It fails to warn of the long waiting lists for medical treatment or the low wages paid to Doctors or the full implementation of the Death Panels that consist of panels of bureaucrats who will be granting approval for medical procedures or denying them to the elderly who make no contribution to society.

From Wikipedia: http://en.wikipedia.org/wiki/United_States_National_Health_Care_Act

The United States National Health Care Act, or the Expanded and Improved Medicare for All Act (H.R. 676), is a bill introduced in the United States House of Representatives by Representative John Conyers (D-MI). The bill had 88 cosponsors in 2009. The act would establish a universal single-payer health care system in the United States, the rough equivalent of Canada’s Medicare, the United Kingdom’s National Health Service…

Under a single-payer system, all medical care would be paid for by the Government of the United States, ending the need for private health insurance and premiums, and probably recasting private insurance companies as providing purely supplemental coverage, to be used when non-essential care is sought.

The national system would be paid for in part through taxes replacing insurance premiums, but also by savings realized through the provision of preventative universal healthcare and the elimination of insurance company overhead and hospital billing costs.

The leftist news media that has been covering up the problems with ObamaCare in order to protect the Democrats in the previous two national elections while the bill was being created and the 20,000 pages of new regulations were being written are now playing their part by reporting the disastrous effects to drum up support for some sort of needed relief. Even liberal web sites like Politico called Barack Hussein Obama’s promise that we could keep our insurance coverage, The Lie of the Year. They are all setting the stage for the White House to announce a viable solution to the millions of citizens suddenly finding themselves with no health care coverage and the millions more who have found they cannot afford the coverage they signed up for. Look for Barack Hussein Obama calling on Congress to voluntarily repeal ObamaCare and replacing it with a National Health Care Single Payer System. The law they wanted all along.

And there goes one third of the U.S. economy right down the tubes.

My name is Nelson Abdullah and I am Oldironsides

The Hidden Obamacare Taxes That Will Crush The Middle Class

MoneyMorning: Get ready to be blindsided by a barrage of new taxes. $1 trillion worth...

They'll be coming courtesy of the Affordable Care Act, otherwise known as Obamacare.

And they won't just be affecting those who make over $250,000. The bulk of these taxes will be passed on directly to the middle class.

That's because while a majority of these "stealth taxes" were designed to be taxes on businesses, they're actually transferred directly to ordinary citizens.

They include the investment income surtax, a Medicare payroll tax, even a "tanning tax" on those who utilize indoor tanning services.

"Many of those [hidden] taxes, especially those on hospitals, insurers and medical device manufacturers, will ultimately be passed on through higher health costs," said Michael Tanner an expert on the healthcare law.

In fact, analysts estimate Obamacare will cost the average taxpayer nearly $6,000 in extra taxes as early as next year.

Obamacare Tax Hikes Stoke Outrage

Many of the Obamacare taxes are already in effect, others will hit January 1. But they are already infuriating millions of Americans.

While even Obamacare detractors applaud the requirement that insurance companies cover pre-existing conditions and put a stop to lifetime caps on benefits, they say these laudable benefits don't compensate for the bills high cost - especially in new taxes.

According to most experts, Obamacare will create a total of twenty new taxes or tax hikes on the American people.

In fact, the Obama administration has already given the IRS an extra $500 million to enforce the rules and regulations of Obamacare.

The new taxes don't bode well for millions of middle-class Americans. Incomes for the rich have soared this decade but middle class workers have seen their wages stagnate and even drop since the 2008 Great Recession.

Many fear Obamacare with its high insurance costs and new taxes, could provide the middle class a fatal blow.

Of course, the Obamacare plan was primarily designed to decrease the number of uninsured Americans and reduce healthcare costs.

Many experts are saying it will have the exact opposite effect.

That's just one of the reasons why Republicans hope to defund Obamacare before January.

They claim that the taxes and costs needed to pay for Obamacare will crush the middle class and most U.S. taxpayers, as well as trigger job losses in affected industries.

Tax experts say you should try to estimate how much you will have to pay when the law goes into full effect - and take precautions to limit the damage to your bottom line.

One expert, Dr. Betsy McCaughey, a constitutional scholar with a Ph.D. from Columbia University, recently wrote a best-seller showing Americans how they can not only survive Obamacare, but prosper through it.

McCaughey claims to be one of the only people in the country - including members of Congress - who has actually read the entire 2,572 page law.

Her book, titled Beating Obamacare: Your Handbook for the New Healthcare Law, breaks the huge bill down into 168 pages of actionable advice.

The book, written in an easy going, easy to read style, shows some startling facts about Obamacare not seen in the mainstream press.

For example, she points to a little known passage in the bill that shows how you could get slapped with a $2,000 fine for not having health insurance - even if you do actually have it.

She also goes into detail explaining how a third of all U.S. employers could stop offering health insurance to their workers.

In one chapter, she shows how ordinary Americans will get stuck paying for substance abuse coverage - even if they never touched a drink or drug in their life.

According to McCaughey's research, senior citizens will get hit the hardest.

Hip and knee replacements and cataract surgery will be especially hard to get from Medicare in the months ahead thanks to Obamacare, according to McCaughey.

She warns seniors to get those types of procedures done now before Obamacare goes into effect January 1.

Book: Beating Obamacare: Your Handbook for the New Healthcare Law

Obamacare will double my monthly premium (according to Kaiser)

That’s  right… the Progressive website, the Daily Kos, reported that according to Kaiser, people’s healthcare premiums, under the new Affordable Care Act, ObamaCare, are doubling for some.

Daily Kos: My wife and I just got our updates from Kaiser telling us what our 2014 rates will be. Her monthly has been $168 this year, mine $150. We have a high deductible. We are generally healthy people who don't go to the doctor often. I barely ever go. The insurance is in case of a major catastrophe.

Well, now, because of Obamacare, my wife's rate is gong to $302 per month and mine is jumping to $284.

I am canceling insurance for us and I am not paying any fucking penalty. What the hell kind of reform is this?

Oh, ok, if we qualify, we can get some government assistance. Great. So now I have to jump through another hoop to just chisel some of this off. And we don't qualify, anyway, so what's the point?

I never felt too good about how this was passed and what it entailed, but I figured if it saved Americans money, I could go along with it.

I don't know what to think now. This appears, in my experience, to not be a reform for the people.

What am I missing?

I realize I will probably get screamed at for posting this, but I can't imagine I am the only Californian who just received a rate increase from Kaiser based on these new laws.

UPDATE: Updated the title per some requests. I appreciate all the helpful comments. I am   now on baby duty but will go through these later for more information. I can't keep up with all the comments right now.

I really do appreciate the helpful comments. Peace all. Peace out.

Technorati Tags: ObamaCare,ObamaCare costs,ObamaCare surprises,Kaiser,Healthcare Premiums,Affordable Care Act,wake-up,ACA,Socialized Medicine,ObamaCare lies,Get-Involved

ObamaCare Cost Increases Shocking to Many…

Fabulous Obamacare Success Stories

EIB: BEGIN 10.03.13 TRANSCRPT

RUSH: James Taranto, the Wall Street Journal, has a story of a guy named Brendan Mahoney, who did succeed. It's a Hartford Courant story, and this guy's being joked about as the man who saved Obamacare. The subhead is: "Great news! They got a 30-year-old dude to sign up!" And here are the details. "Meet Brendan Mahoney, the young man who is saving ObamaCare. He's 30 years old, a third-year law student at the University of Connecticut. He's actually been insured for the past three years -- in 2011 and 2012 through a $2,400-a-year school-sponsored health plan." So he's already got insurance and he went to the exchange. This year he is insured "through 'a high-deductible, low-premium plan that cost about $39 a month through a UnitedHealthcare subsidiary.'" But even though he already had plan, at 39 bucks a month, "he wanted to see what ObamaCare had to offer."

"He tried logging in to the exchange's website at 8:45 a.m. yesterday, which is impressive in itself. Most young people don't get up that early. 'He said the system could not verify his identity.'" He's got insurance, don't forget. He's paying $39 a month through a United Health Care subsidiary, high deductible, low premium plan, school-sponsored health plan. When the system couldn't verify his identity, "he called the toll-free help line, whose operator also encountered computer trouble. 'But then he logged on a second time, he said, and the system worked.'"

He told the Hartford Courant, "'Once it got running, it was fast. It really made my day. It's a lot like TurboTax.' He obtained insurance through ObamaCare. Now, he says, 'if I get sick, I'll definitely go to the doctor.' Even better, if he stays healthy, he won't need to go to a doctor, and his premiums will support chronically ill policyholders on the wrong side of 40."

This is the guy, this is what they're looking for. Now, hang in there with me, folks. This is not over. This is exactly what they're looking for, a 30-year-old healthy guy to sign up and pay the freight so that nanaw and grandpa can be treated. They're looking for 30-year-olds who are not gonna get sick, not gonna put any financial strain on the system. They pay the premium, they pay the freight. This guy had a premium of 39 bucks. He wanted to see if he could beat that on Obamacare, and he did.

"So, how much of a premium is strapping young Brendan Mahoney paying to help make ObamaCare work? Oops. The Courant reports that Mahoney 'said that by filling out the application online, he discovered he was eligible for Medicaid.'" So 30-year-old strapping, healthy dude, Brendan Mahoney, beginning next year will not pay any premium at all because Obamacare, the exchange, told him, based on the way he filled out the data, that he is eligible for Medicaid.

What a fabulous success story for Obamacare's first day. Here we have a future lawyer -- remember, now, this guy is I think a 3L at the University of Connecticut. He was gonna be a lawyer, might still be a lawyer. He was already paying for insurance, and he's been converted into a welfare case. And that, ladies and gentlemen, is the objective. When you strip it all away, this shows how all of this is really designed to work.

Now, on the surface -- and everything I've told you here is true -- this 30-year-old guy signs up, he's paying a premium of $39, but, you know, he's curious. He's a tech savvy guy. He wanted to find out what it was all about. Maybe he could beat the 39 bucks. So he fills out all the necessary forms, inputs all the data, and he finds out at age 30 he qualifies for Medicaid, and therefore he's become a welfare case.

So this 30-year-old guy -- and hopefully, theoretically millions like him who are gonna be signing up and paying all these premiums so that nanaw and grandpa can get health coverage and treatment, qualified for Medicaid. So a 30-year-old guy -- who was gonna be a lawyer, so you figure he's got some decent earning power -- has been converted by Obamacare into a welfare case. And he didn't pull any strings. He didn't know anybody. He didn't ask for special treatment. This is just what the system spat out.

So now he doesn't have pay 39 bucks. Now he can get rid of that health plan he's got at school. At 30 years of age, he discovered he was eligible for Medicaid. He's a healthy guy. I is a joke here that they're saying, "Here we have great news, a 30-year-old guy signed up," because the story is nobody's been able to sign up. But lo and be, "Hey, we got a guy!" You know, the regime can tell everyone, "We got a guy! We got a guy! It's this guy in Old Clayneck, Connecticut, 30 years old. Look at this, what we did here. We got a guy! We got a guy.

"He's exactly who we want to sign up here," and Obamacare turned him into a welfare case. They turned him into a ward of the state. A guy that's gonna be a lawyer, is gonna have decent earning power is now a Medicaid recipient. "Oh, come on, Rush! It's just a first-year glitch. These things will get ironed out." A little companion story here from the Washington Free Beacon. "Health insurance premiums for young people will rise in all 50 states under Obamacare, with an average increase of 260 percent, according to a study released Thursday.

"The young and healthy segment of the uninsured is considered crucial for the Affordable Care Act to succeed. Former President Bill Clinton suggested last week that Obamacare only works 'if young people show up.'" Well, what the hell, folks? Here we got this young guy that showed up and the system made him a Medicaid recipient. He didn't game it. He is just going through the process and found out that he qualified for Medicaid -- and I'm telling you, in my not so cynical opinion, I think that is the long-0term objective is to turn everybody into a welfare case in this country, folks.

That's the long-term objective of not just Obamacare, but of the Democrat Party. Turn everybody into a dependents. Make everybody dependent on government for things they consider really important, like their health care. Here's another one. The Associated Press: "A Bumpy First Day for New Affordable Care Act Insurance Marketplaces -- The technical trouble couldn't dampen the relief Hussein Daoud felt for himself, his wife and their six children. The 51-year-old Detroit man came to apply for insurance at the Dearborn-based nonprofit organization ACCESS. With the help of counselors, he learned that his annual income of $14,500 made him eligible for Medicaid, and he likely won't have to pay for a plan that covers his family."

He's 51 years old. He, his wife, and six children -- and an annual income of $14,500? What in the world...? (interruption) Yeah, eight people for free, but before you get there, how are eight people getting by on his $14,500 annual income? Well, I know. Food stamps and all the other stuff, but so eight people in Dearbornistan go in to sign up and he end up becoming wards of the state. Health care for them is free as well, in addition to the strapping young 30-year-old Brendan Mahoney in Connecticut. (laughing)

On one hand, this is the biggest collection of Keystone Cops and incompetence running. On the other hand, this is a really, really profoundly dangerous thing that's happening here. But there's a part of me that, I'm sorry, cannot suppress my laughter at raging... I know you might think it's a conflict to call them incompetent when they're registering all these wards of the state. I am here to tell you, folks, that they did not intend for 30-year-olds to be comped. That was never part of the plan. That's who is going to have to pay. How in the world...?

The way that they make those people wards of the state is take all of their disposable income in the form of health care premiums and make them dependent in other ways. But they do need money flowing into the system. They do need some people paying premiums, and they can't get by with just the rich paying premiums; there isn't enough money there to cover everybody. So they need these strapping, young, 30-year-old guys and women, who aren't gonna get sick, paying into the system -- and the system's converting 'em to welfare recipients. (Raspberry) Hee-hee-hee-hee-hee.

BREAK TRANSCRIPT

RUSH: Here's Lee, New York City. Lee, it's great to have you on the EIB Network. Hello.

CALLER: How are you? Hey, you spoke about the Obamacare success story with 30-year-old guy in law school getting a free ride.

RUSH: Yeah.

CALLER: They're probably tickled pink about this because what's gonna happen in a few years or less than that this guy starts earning six figures and he's stuck in the program? Hello, premiums!

RUSH: Now, that's a good point. He's talking about the first story I had in the Stack today, a Hartford Courant story about Brendan, some 30-year-old law student at University of Connecticut. He is in, folks, an insurance plan right now at school where he has a $39 a month premium. So he went to the Obama exchange in Connecticut on the website, and he got through, and he signed up.

Well, he found out that he qualifies for Medicaid as a college student. He doesn't have any income, not to speak of, so he's poor. So he qualifies for Medicaid. So right now, he doesn't pay anything. Now, the regime... He's 30, still in school. The regime wants people like this guy paying full freight to pay for nanaw and grandma. So people are making a big joke about the fact that this Brendan guy -- a healthy, strapping 30-year-old -- has been converted into a ward of the state by Obamacare.

But Lee's point here is, if this guy finishes school and does become a lawyer and does find a job (and all of those are questionable) then he's no longer qualifying for Medicaid, is he? He won't qualify for Medicaid once he gets a job as a lawyer, 'cause he won't qualify for Medicaid anymore. As Lee points out, this 30-year-old strapping young Brendan guy, he's not gonna like it. He's not gonna like the revelation that his premiums are gonna skyrocket, and that's true. That's gonna be a delayed reaction, because that requires old Brendan to graduate and then find a job at a decent law firm where he hangs his own shingle or what have you.

It's a great point, Lee. I appreciate that.

BREAK TRANSCRIPT

RUSH: Here's Nancy, Salt Lake City. Hi, Nancy, great to have you on the program. Hi.

CALLER: Hello. Nice to speak with you. Thank you for your time. I'll get right to the point 'cause I know you're busy. I want to tie in your very first story in the first hour and the story in your second hour about the Medicaid. I'm a single mom. I make $5,000 a year. I qualify for Medicaid, but my spend down premium is $460 a month. I am not eligible for any tax credit subsidy because my income is below 100% of the federal poverty level, which is 99% of my household income. This is a mess, it's a chocolate mess.

RUSH: Wait a minute. You make $5,000 a year?

CALLER: Yes. I'm a student and I make $5,000 a year and I'm trying to get out of the toilet.

RUSH: Oh, okay, student. And you don't qualify. You make too little to qualify for poverty?

CALLER: I do qualify. I am 100% below the federal poverty level.

RUSH: Yeah.

CALLER: But for me to have Medicaid I have to pay the state of Utah $460 a month.

RUSH: Well, how did this clown in Connecticut get onto Obamacare and he's not gonna pay anything?

CALLER: Exactly, and he doesn't even have a child that he has to raise.

RUSH: Well, not that we know of.

CALLER: Well, that's true, too.

RUSH: Not that he knows of.

CALLER: I'm still trying to see the future pay-in, you know. But, anyway, so I'm not available for any tax credit subsidies that they claim that the poor people get to help them --

RUSH: This is incredible. So people at or below 100% of the poverty line cannot get Obamacare subsidies?

CALLER: Correct. You are correct. I have it right here in black and white. I do not qualify for any of the subsidy. But yet they want 99% of my household --

RUSH: You know, I could be really insensitive and say, "Welcome to my world."

CALLER: Yeah.

RUSH: But I wouldn't do that.

CALLER: But that's okay.

RUSH: I'm not doing that, Dawn, don't shake your head. I wasn't doing that. I told her I could, but I wouldn't. I'm not doing that. I just want you to know I don't get subsidies, either.

CALLER: Yeah. It blows you away, doesn't it, how this Obamacare is supposed to help the poor and --

RUSH: Yes, I know.

CALLER: -- blah, blah, blah.

RUSH: I did not know that you could be too poor to qualify for Obamacare. You're supposed to get Medicaid, but you have to pay $460 bucks a month did you say for Medicaid?

CALLER: Correct.

RUSH: That doesn't sound like it makes any sense. Anyway, I've gotta run. I'm outta time. I'm very sorry, Nancy, but that we'll have to look into. Don't go away, folks. Be right back.

BREAK TRANSCRIPT

RUSH: I don't understand having to pay $400 a month for Medicaid. I've never heard of that before. I'm not challenging what she said; I just haven't heard about it.

END TRANSCRIPT

Obamacare To Double Cost Of Insurance For Average Californian

Originally Posted 06/02/2013 22:18 –0400 at ZeroHedge

Last week, the state of California claimed that its version of Obamacare’s health insurance exchange would actually reduce premiums. But, as Forbes reports, the data that the executive director of California's 'exchange' released tells a different story: Obamacare, in fact, will increase individual-market premiums in California by as much as 146 percent. The exuberance that Peter Lee exclaimed over the 'savings' is a misleading comparison. He was comparing apples - the plans that Californians buy today for themselves in a robust individual market-and oranges - the highly regulated plans that small employers purchase for their workers as a group. If you're a 25 year old male non-smoker, buying insurance for yourself, the cheapest plan on Obamacare’s exchanges is the catastrophic plan, which costs an average of $184 a month; but in 2013, on eHealthInsurance.com, Forbes explains, the median cost of the five cheapest plans was only $92. In other words, for the typical 25-year-old male non-smoking Californian, Obamacare will drive premiums up by between 100 and 123 percent. The desperate spin of the PR disaster is incredible as talk of a 'rate shock' is now very prescient, "these extraordinary increases are up to 15 times faster than inflation and threaten to make health care unaffordable for hundreds of thousands of Californians."

Via Forbes,

Last week, the state of California claimed that its version of Obamacare’s health insurance exchange would actually reduce premiums. “These rates are way below the worst-case gloom-and-doom scenarios we have heard,” boasted Peter Lee, executive director of the California exchange. But the data that Lee released tells a different story: Obamacare, in fact, will increase individual-market premiums in California by as much as 146 percent.

...

“The rates submitted to Covered California for the 2014 individual market,” the state said in a press release, “ranged from two percent above to 29 percent below the 2013 average premium for small employer plans in California’s most populous regions.”

That’s the sentence that led to all of the triumphant commentary from the left. “This is a home run for consumers in every region of California,” exulted Peter Lee.

Except that Lee was making a misleading comparison. He was comparing apples—the plans that Californians buy today for themselves in a robust individual market—and oranges—the highly regulated plans that small employers purchase for their workers as a group. The difference is critical.

...

If you’re a 25 year old male non-smoker, buying insurance for yourself, the cheapest plan on Obamacare’s exchanges is the catastrophic plan, which costs an average of $184 a month.

... But in 2013, on eHealthInsurance.com (NASDAQ:EHTH), the median cost of the five cheapest plans was only $92.

In other words, for the typical 25-year-old male non-smoking Californian, Obamacare will drive premiums up by between 100 and 123 percent.

...

Obamacare’s impact on 40-year-olds is steepest in the San Francisco Bay area, especially in the counties north of San Francisco, like Marin, Napa, and Sonoma. Also hard-hit are Orange and San Diego counties.

...

How did Lee and his colleagues explain the sleight-of-hand they used to make it seem like they were bringing prices down, instead of up? “It is difficult to make a direct comparison of these rates to existing premiums in the commercial individual market,” Covered California explained in last week’s press release, “because in 2014, there will be new standard benefit designs under the Affordable Care Act.” That’s a polite way of saying that Obamacare’s mandates and regulations will drive up the cost of premiums in the individual market for health insurance.

But rather than acknowledge that truth, the agency decided to ignore it completely, instead comparing Obamacare-based insurance to a completely different type of insurance product, that bears no relevance to the actual costs that actual Californians face when they shop for coverage today. Peter Lee calls it a “home run.” It’s more like hitting into a triple play.

Everyone needs to go through the process of finding out what ObamaCare will cost them and then send the quote on to your Congressman and Senator… and ask them Why?  What happened to the promises?!?

Related:

Anyone Who Is Buying That the Republicans in the House Are Unreasonable Needs to Read This… NR: 100 Unintended Consequences of ObamaCare

Technorati Tags: ObamaCare,ObamaCare Costs,ObamaCare Mandates,California,ACA,Medicaid,Rush,EIB

Thanks To The Affordable Care Act, The Cheapest Family Insurance Policy In America Will Cost $20,000 Says IRS

Written By: Rob Port Feb 1, 2013 4:39pm – Say Anything Blog

There’s an old joke among conservatives about government health care programs. It goes something like, “If you think health care is expensive now just wait until it’s free.”

I can’t help thinking about that as I read what the “Affordable Care Act” is doing for the affordability of health insurance in America.

(CNSNews.com) – In a final regulation issued Wednesday, the Internal Revenue Service (IRS) assumed that under Obamacare the cheapest health insurance plan available in 2016 for a family will cost $20,000 for the year.

Under Obamacare, Americans will be required to buy health insurance or pay a penalty to the IRS.

The IRS’s assumption that the cheapest plan for a family will cost $20,000 per year is found in examples the IRS gives to help people understand how to calculate the penalty they will need to pay the government if they do not buy a mandated health plan.

The examples point to families of four and families of five, both of which the IRS expects in its assumptions to pay a minimum of $20,000 per year for a bronze plan.

“The annual national average bronze plan premium for a family of 5 (2 adults, 3 children) is $20,000,” the regulation says.

Bronze will be the lowest tier health-insurance plan available under Obamacare–after Silver, Gold, and Platinum. Under the law, the penalty for not buying health insurance is supposed to be capped at either the annual average Bronze premium, 2.5 percent of taxable income, or $2,085.00 per family in 2016.

That gap between what a health insurance policy is going to cost in this coming era of Obamacare, and what the tax will be if you don’t buy a policy, could well be what does the law in. George Will referred to this problem in a column a couple of weeks ago.

The Supreme Court upheld the legality of the individual mandate based on the idea that the mandate’s penalty was a tax and not a penalty. But the Supreme Court noted in its ruling that the difference between a tax and a penalty is a matter of degree. As long as the tax for not buying health insurance stays low enough to not be considered punitive, it’s a tax. But if it’s raised, it becomes a penalty.

This is all a lot of nonsensical parsing, of course, but what it does mean is that if the federal government intends to raise the tax for not having health insurance the law is susceptible again to being overturned by the courts. But if they leave it as low as it is now, a lot of Americans are going to see the big difference between paying the tax and paying for cost-inflated health insurance and opt for the former.

And who could blame them?

Technorati Tags: ObamaCare,ObamaCare costs,ObamaCare surprises,ObamaCare taxes,wake-up America,healthcare insurance costs,Affordable Care Act,IRS,health insurance costs

Biden, Obamas tell health care tall tales at Charlotte convention

Barack Obama's father, also named Barack Obama, and mother, Stanley Ann Dunham. (Photo: AP)

Daily Caller:

Vice President Joe Biden, first lady Michelle Obama and President Barack Obama all told a story during the Democratic National Convention about battles the president’s mother waged with health care companies as she fought a terminal illness in 1995. But the version of events presented Thursday night differs dramatically from others, including those of at least two biographers and Obama’s own previous account.

“Barack had to sit at the end of his mom’s hospital bed and watch her fight cancer and insurance companies at the same time,” Biden said.

The first lady added to the story, observing from the podium that “watching your mother die of something that could have been prevented — that’s a tough thing to deal with.”

“When my mother got cancer,” the president echoed during a video played inside the Time Warner Cable Arena before his entrance, ”she wasn’t a wealthy woman and it pretty much drained all her resources.”

But in 2004, the president told the Chicago Sun-Times that he wasn’t present during his mother’s final days at all.

“The biggest mistake I made was not being at my mother’s bedside when she died,” he said then. ”She was in Hawaii in a hospital, and we didn’t know how fast it was going to take, and I didn’t get there in time.”

David Maraniss, who later authored the best-selling book “Barack Obama: The Story,“ wrote in The Washington Post in 2008 that Obama did not visit her.

“He was into his Chicago phase, reshaping himself for his political future, but now was drawn back to Hawaii to say goodbye to his mother,” Maraniss reported. ”Too late, as it turned out. She died on Nov. 7, 1995, before he could get there.”

The story Democratic convention-goers heard in Charlotte, N.C., however, was not intended as a tragic remembrance, but to convey the tragedy of suffering in a hospital without health insurance.

This narrative, too, is contradicted by history: Stanley Ann Dunham, the president’s late mother, did have health insurance to cover her uterine and ovarian cancer, through her job with Development Alternatives Inc. of Bethesda, Md.

“Ann’s compensation for her job in Jakarta had included health insurance, which covered most of the costs of her medical treatment,” according to Dunham’s biographer, New York Times journalist Janny Scott.

“Once she was back in Hawaii, the hospital billed her insurance company directly, leaving Ann to pay only the deductible and any uncovered expenses, which she said, came to several hundred dollars a month.”

Scott also wrote that Dunham’s compensation package for her work in Indonesia included $82,500 — about $132,000 in today’s dollars — plus a housing allowance and a car, making that amount well within her means.

The story told from the podium Thursday in Charlotte has been a persistent refrain from Obama and his surrogates since his presidential candidacy began in 2007. His campaign produced an ad that year for the Iowa caucuses in which Obama claimed his mother was ”more worried about paying her medical bills than getting well.”

“She wasn’t thinking about coming to terms with her own mortality,” he told an audience in Santa Barbara, Calif., during a 2007 campaign swing. “She had been diagnosed just as she was transitioning between jobs. And she wasn’t sure whether insurance was going to cover the medical expenses because they might consider this a pre-existing condition.”

“I remember just being heartbroken,” the future president said then, “seeing her struggle through the paperwork and the medical bills and the insurance forms. So I have seen what it’s like when somebody you love is suffering because of a broken health care system. And it’s wrong. It’s not who we are as a people.”

Related:

Fact Check: First Lady's False Fairy Tale of Struggle

DNC-Backed, $100K-Earning Union Member Hits Romney 

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Replacing ObamaCare: True Insurance

By Daniel Anderson on April 30, 2012 -  FreedomWorks

Consider this: Why does your job offer health insurance, but not auto insurance? Certainly, you need to be healthy to come into work, but most Americans also need a car to get to work. For that matter, why doesn’t your job offer home or life insurance? What makes health insurance a common, nearly-ubiquitous benefit of employment in the United States?

The prevalence of employer group-based health insurance in America is a result of World War II. During the lead-up to the war in the Great Depression, there was an enormous surplus of labor relative to demand. However, as millions of Americans were sent overseas to fight in World War II, the labor pool shrunk dramatically. At the same time, the demand for labor skyrocketed as the federal government poured enormous resources into war production, creating a massive industry that desperately needed workers.

Given these conditions, businesses would normally raise wages in order to attract workers. However, the federal government also imposed wage controls on many American industries. In order to get around these wage controls, businesses began to offer health insurance to lure in prospective employees, along with other “fringe benefits.”

Following the war, Congress created a tax code that rewarded employer group-based health insurance. If businesses provided their employees with health insurance, that insurance benefit would not be taxed. However, if businesses simply raised their employees’ wages, the wages would be taxed. Understandably, most businesses decided to offer health insurance to their employees instead of raises.

In this way, the federal government largely created the employer group-based health insurance system. This system is unique to the United States. Every other developed country has some form of government health care, whether it’s truly socialized medicine such as in Britain, or a single-payer system like in Sweden. Our system is a result of both the unforeseen consequences of government involvement in business, and the natural American aversion to big government.

For most Americans, employer-based health care works. A March 28th Reason-Rupe poll found that:

• 87% of Americans are covered by health insurance

• 63% of Americans with health insurance are covered by employer group-based plans

• 23% of Americans with health insurance are covered by Medicare or Medicaid

• 58% of Americans are satisfied with their overall health care

• 23% of Americans are dissatisfied with their overall health care

So, the vast majority of Americans have health insurance coverage, a majority of Americans with health insurance receive it through their employer, and a majority of Americans are satisfied with things as they are.

What does this mean?

Simply put, there’s little reason to dramatically alter health insurance in America as things stand. Unfortunately, the provisions in ObamaCare will force a radical, fundamental shift in health care from employer group-based health insurance to health insurance exchanges controlled by the federal government. ObamaCare won’t destroy the employer group-based system, but it will change the basic dynamics of the health insurance market.

Still, while the polling numbers strongly support the continuation of the employer group-based system, not everyone is happy with it. After all, more than a tenth of Americans lack coverage, and nearly a quarter of Americans are dissatisfied with their overall health care.

What’s the best way to respond to those numbers? Congress could follow the ObamaCare route: mandating insurance and expanding federal control of health care through government health plans. For most Americans, this unconstitutional and expensive path toward addressing the problem is unacceptable.

The solution to helping people left behind by the employer group-based health insurance system isn’t an expansion of the government group-based health insurance system. Instead, we ought to encourage true, individual insurance.

What are some of the benefits of true insurance? The main benefit is portability. For most Americans, losing or leaving their jobs means losing their health insurance as well, since the two are connected. This increases the hardship of the unemployed, while simultaneously discouraging entrepreneurial Americans from leaving their jobs and their health insurance in order to start their own businesses.

But if you purchase health insurance separately from your job, like you purchase auto or homeowner’s insurance, that insurance now stays with you regardless of your employment status. The portability of true, individual insurance helps to calm some of the anxieties that come with unemployment while also freeing up America’s entrepreneurs to start businesses and to create jobs.

True insurance’s portability also helps to deal with the problem of pre-existing conditions in health care. The problem of pre-existing conditions should not be overstated, as it only afflicts about 1% of Americans. Still, it was a key impetus behind the push for ObamaCare, and all health care policy experts who hope to implement reform must address it. While by no means a silver bullet, the ability to keep the same insurance provider throughout several jobs, and possibly throughout your entire career, helps to alleviate the pre-existing conditions problem.

Most people acquire their “pre-existing condition” during their adult life, while in the workforce. When that happens, their insurance will most likely cover the new condition, similar to other ailments. But once these people change jobs, they now suddenly have a “pre-existing condition.” The portability and continuity of true insurance would do a great deal to reduce the number of Americans who have trouble accessing health care due to their pre-existing conditions.

Finally, true insurance provides Americans with greater choice and freedom with their health care. In a sense, when you apply for a job today, you’re also applying for that job’s health plan. Unfortunately, you don’t really know the details of the health plan until you’ve already taken the job and the plan.

What if you purchase true, individual insurance? You can pick a plan that the right premium and deductible. You can ensure that the plan covers the things you want covered. In short, you can get a plan that appeals to you, instead of being forced into your employer’s pre-packaged plan, which may or may not cost what you would prefer or cover what you want covered.

So, there are several major advantages to a true insurance system. How do we encourage its growth? The most important step to growing the true insurance market is to equalize tax treatment of the employer and true insurance systems. Full deductibility of all health care expenditures would help to level the playing field in the insurance market, thereby increasing patient choice.

The employer group-based health insurance system works for most Americans, but it’s not perfect. For those Americans who would prefer something different, we ought to forgo government group-based health insurance like in ObamaCare in favor of encouraging true, individual health insurance.

TAKE ACTION: Urge your Members of Congress to cosponsor the Patient OPTION Act!