Obamacare sticker shock: Price hikes are on the way

Hmmm...

Insurers cite rising drug costs and patients who utilize a lot of medical services for the price-hike requests, which range from 17 percent in New York, and more than 20 percent in Virginia, to 30 percent rate increase requests from Oregon's largest insurers.

Wow.

A unit of CareFirst Blue Cross in Virginia said it will transition all of its bronze plan members to mid-tier, or so-called silver, plans in 2017. The switch will mean a 70 percent price hike for those customers, according to the company's rate request filing.


Bronze plans have been some of the biggest sources of losses for insurers because the low rates attract sick patients who cost more, but often drop coverage during the year.


"Tons of people came in, got what they needed and left. And they ended up 20 percent — in some cases 30 percent — more expensive than those who came in and stayed," said Dr. Martin Hickey, CEO New Mexico Health Connections, a nonprofit cooperative insurer.


Obamacare sticker shock: Price hikes are on the way

Sure, makes sense. Diagnosed with something chronic, go get health insurance right away, then drop it as soon as you got what you need. You can always get it again later. Still, I recall the insurance industry supporting Obamacare so **** 'em.

tres borrachos said:

Hmmm...

Insurers cite rising drug costs and patients who utilize a lot of medical services for the price-hike requests, which range from 17 percent in New York, and more than 20 percent in Virginia, to 30 percent rate increase requests from Oregon's largest insurers.

Wow.

A unit of CareFirst Blue Cross in Virginia said it will transition all of its bronze plan members to mid-tier, or so-called silver, plans in 2017. The switch will mean a 70 percent price hike for those customers, according to the company's rate request filing.


Bronze plans have been some of the biggest sources of losses for insurers because the low rates attract sick patients who cost more, but often drop coverage during the year.


"Tons of people came in, got what they needed and left. And they ended up 20 percent — in some cases 30 percent — more expensive than those who came in and stayed," said Dr. Martin Hickey, CEO New Mexico Health Connections, a nonprofit cooperative insurer.


Obamacare sticker shock: Price hikes are on the way

Click to expand...

That is not really very surprising. If health care runs at 11 plus percent of GDP or $4.000 per capita, then that is what insurance must cost. I pointed this out in the run up to ACA many times. I had looked at it for a number of European countries and thought the US discussion was widely naive. In Germany the cost paid out of wages and set at 15.7 percent this year and is always between 15 and 19 percent tending upward after having fallen somewhat after the services were reduced. In the US the cost must be higher as the percentage of GDP spent in the US on medical care is much higher. I suspect the average wage would require between 24 and 26 percent hit, if it is to cover costs. But that is only a guess.

tres borrachos said:

Hmmm...

Insurers cite rising drug costs and patients who utilize a lot of medical services for the price-hike requests, which range from 17 percent in New York, and more than 20 percent in Virginia, to 30 percent rate increase requests from Oregon's largest insurers.

Wow.

A unit of CareFirst Blue Cross in Virginia said it will transition all of its bronze plan members to mid-tier, or so-called silver, plans in 2017. The switch will mean a 70 percent price hike for those customers, according to the company's rate request filing.


Bronze plans have been some of the biggest sources of losses for insurers because the low rates attract sick patients who cost more, but often drop coverage during the year.


"Tons of people came in, got what they needed and left. And they ended up 20 percent — in some cases 30 percent — more expensive than those who came in and stayed," said Dr. Martin Hickey, CEO New Mexico Health Connections, a nonprofit cooperative insurer.


Obamacare sticker shock: Price hikes are on the way

Click to expand...

Meanwhile, in the real world, healthcare costs overall have been rising so slowly, the IPAB has been delayed yet another year.

But we all know everything is gonna SKYROCKET. NEXT year, of course...just like wingnuts have been claiming for the last five years.

Drug Stocks Surge After U.S. Says Cost Panel Will Wait Until 2017 - Bloomberg