THURSDAY, April 18, 2013 (Kaiser Health News) — Few aspects of the Affordable Care Act are more critical to its success than affordability, but in recent weeks experts have predicted costs for some health plans could soar next year.

Now health law supporters are pushing back, noting close ties between the actuaries making the forecasts and an insurance industry that has been complaining about taxes and other factors it says will lead to rate shock for consumers.

"Most actuaries in this country -- what percentage are employed by insurance companies?" Sen. Al Franken, a Minnesota Democrat, asked an actuary last week at a hearing of the Committee on Health, Education, Labor and Pensions.

The committee was discussing a study published last month by the Society of Actuaries (SOA) predicting that, thanks to sicker patients joining the coverage pool, medical claims per member will rise 32 percent in the individual plans expected to dominate the ACA exchanges next year. In some states costs will rise as much as 80 percent, the report said.

 

Health Actuaries: Obamacare Rates Will Soar - Healthy Living - Everyday Health

We are just at the tip of the cost iceberg...

I work with consultants who tell me that admin costs alone will cost me 3% on our company health care spend...It will get interesting. The freaking unions are finally figuring out that they will not be exempt from the cadillac tax and will see there rich plan diminish. Fortunately, barry will be out of office when that provision takes effect.

I found out today that my portion of health insurance will be increasing approximately $60 weekly.:irked:

I found out today that my portion of health insurance will be increasing approximately $60 weekly.:irked:

 

Were you told why on the increase and can you make that a % for us?

Were you told why on the increase and can you make that a % for us?

 

I can't give a pct. increase because the employee cost was zero before. The reason is twofold, one is the companies projected increase in health care expense and the other is a downturn in business.

So from $0 a month to roughly $250 a month?

Costs will go up year one. There is no doubt about that. Actuaries are adding cost for care previously not covered into the insurance model. Here is the part I can't figure out and the part that makes me think hospitals and health care providers may reap a windfall.

 

Consider this hypothetical - Today, pre-Obamacare, a person with a serious illness has no insurance coverage. They require treatment. They are receiving treatment. Who is covering the cost of that treatment? Let's say this person has a cost of treatment between hospital, treatment facilities and doctors that amounts to $200,000. There is no insurance. The patient has no money. Are all the providers eating that cost?

 

Now we have that same patient after Obamacare. That $200,000 in cost is getting paid through the new Obamacare insurance system. Who is paying? Everyone, including the patient. That is $200,000 in cost the actuary has to find premiums for so everyone's rates go up. And now the hospital, treatment facilities and doctors are getting paid $200,000. That sounds like a windfall to me. It sounds to me like all the healthcare side of Obamacare should be rubbing their hands with the extra payments they will now be receiving for care they gave away or deeply discounted previously.

 

Am I missing something? Aren't insurance companies going to bring in more premium dollars than ever next year? Aren't healthcare providers going to receive more money in payments than ever before?

 

If that is true, what is year 2 of Obamacare going to look like? Insurance companies and healthcare providers just had very profitable years on the backs of the jacked up premiums paid by us. Will rates decrease?

 

Bottom line - it looks to me like there will be more premiums paid in year one of Obamacare than the healthcare industry has ever seen and they are going to receive a windfall. Please, straighten me out people. What am I missing?

So from $0 a month to roughly $250 a month?

 

Unfortunately, that is correct.

Costs will go up year one. There is no doubt about that. Actuaries are adding cost for care previously not covered into the insurance model. Here is the part I can't figure out and the part that makes me think hospitals and health care providers may reap a windfall.

 

Consider this hypothetical - Today, pre-Obamacare, a person with a serious illness has no insurance coverage. They require treatment. They are receiving treatment. Who is covering the cost of that treatment? Let's say this person has a cost of treatment between hospital, treatment facilities and doctors that amounts to $200,000. There is no insurance. The patient has no money. Are all the providers eating that cost?

 

Now we have that same patient after Obamacare. That $200,000 in cost is getting paid through the new Obamacare insurance system. Who is paying? Everyone, including the patient. That is $200,000 in cost the actuary has to find premiums for so everyone's rates go up. And now the hospital, treatment facilities and doctors are getting paid $200,000. That sounds like a windfall to me. It sounds to me like all the healthcare side of Obamacare should be rubbing their hands with the extra payments they will now be receiving for care they gave away or deeply discounted previously.

 

Am I missing something? Aren't insurance companies going to bring in more premium dollars than ever next year? Aren't healthcare providers going to receive more money in payments than ever before?

 

If that is true, what is year 2 of Obamacare going to look like? Insurance companies and healthcare providers just had very profitable years on the backs of the jacked up premiums paid by us. Will rates decrease?

 

Bottom line - it looks to me like there will be more premiums paid in year one of Obamacare than the healthcare industry has ever seen and they are going to receive a windfall. Please, straighten me out people. What am I missing?

 

I'm would like to know the answer to this as well.

 

If my insurance cost was not increasing so much, I believe that I would be buying stock of some of the big insurance providers...

Costs will go up year one. There is no doubt about that. Actuaries are adding cost for care previously not covered into the insurance model. Here is the part I can't figure out and the part that makes me think hospitals and health care providers may reap a windfall.

 

Consider this hypothetical - Today, pre-Obamacare, a person with a serious illness has no insurance coverage. They require treatment. They are receiving treatment. Who is covering the cost of that treatment? Let's say this person has a cost of treatment between hospital, treatment facilities and doctors that amounts to $200,000. There is no insurance. The patient has no money. Are all the providers eating that cost?

 

Now we have that same patient after Obamacare. That $200,000 in cost is getting paid through the new Obamacare insurance system. Who is paying? Everyone, including the patient. That is $200,000 in cost the actuary has to find premiums for so everyone's rates go up. And now the hospital, treatment facilities and doctors are getting paid $200,000. That sounds like a windfall to me. It sounds to me like all the healthcare side of Obamacare should be rubbing their hands with the extra payments they will now be receiving for care they gave away or deeply discounted previously.

 

Am I missing something? Aren't insurance companies going to bring in more premium dollars than ever next year? Aren't healthcare providers going to receive more money in payments than ever before?

 

If that is true, what is year 2 of Obamacare going to look like? Insurance companies and healthcare providers just had very profitable years on the backs of the jacked up premiums paid by us. Will rates decrease?

 

Bottom line - it looks to me like there will be more premiums paid in year one of Obamacare than the healthcare industry has ever seen and they are going to receive a windfall. Please, straighten me out people. What am I missing?

 

In my simple of way of thinking the healthcare system will always have their reasons why rates rates are going up and I can't ever envision a scenario where rates go down.

Unfortunately, that is correct.

 

Sorry to hear that and I think it will be a long, hard ride. In other words, Pandora's box just got opened and the rates will keep increasing and they will hit you in the back end with less coverage. Maybe not next year but it is coming.

Costs will go up year one. There is no doubt about that. Actuaries are adding cost for care previously not covered into the insurance model. Here is the part I can't figure out and the part that makes me think hospitals and health care providers may reap a windfall.

 

Consider this hypothetical - Today, pre-Obamacare, a person with a serious illness has no insurance coverage. They require treatment. They are receiving treatment. Who is covering the cost of that treatment? Let's say this person has a cost of treatment between hospital, treatment facilities and doctors that amounts to $200,000. There is no insurance. The patient has no money. Are all the providers eating that cost?

 

Now we have that same patient after Obamacare. That $200,000 in cost is getting paid through the new Obamacare insurance system. Who is paying? Everyone, including the patient. That is $200,000 in cost the actuary has to find premiums for so everyone's rates go up. And now the hospital, treatment facilities and doctors are getting paid $200,000. That sounds like a windfall to me. It sounds to me like all the healthcare side of Obamacare should be rubbing their hands with the extra payments they will now be receiving for care they gave away or deeply discounted previously.

 

Am I missing something? Aren't insurance companies going to bring in more premium dollars than ever next year? Aren't healthcare providers going to receive more money in payments than ever before?

 

If that is true, what is year 2 of Obamacare going to look like? Insurance companies and healthcare providers just had very profitable years on the backs of the jacked up premiums paid by us. Will rates decrease?

 

Bottom line - it looks to me like there will be more premiums paid in year one of Obamacare than the healthcare industry has ever seen and they are going to receive a windfall. Please, straighten me out people. What am I missing?

 

You're missing out that in the past not everything had to be treated by hospitals, doctors, etc. The activity and exposure will increase tremendously.

Remember that Obamacare will place new taxes on providers of service this year. Substantial new taxes. These will be charged to the insurance carriers. These types of charges that were not present will definitely drive up rates. 2014 rates will be much higher. Given that the providers are just now figuring out what these taxes are and the insurances rates for 2013 do not really reflect them buying stock in health insurance companies would be ill-advised. From an insider - they are in panic right now.

 

Anyone who is getting completely no-charge insurance from their company better plan on that going away. Companies are shifting this to employees fast. I am not sure if the 'Cadillac' plan taxes are driving this. Companies had to start reporting what healthcare cost in this years W-2s. There is a new line box 12 for that.

The other side of the equation is how much would the Gov't cost for the uninsured, under-insured, medicare and medicaid continue to escalate without Obamacare? Seems to me the bottom line objective of Obamacare is to help control the total cost of healthcare.........although shifting costs from the gov't directly to the individual (either individual plan or group plan) is painful.

 

We, the taxpaying/working individuals pay either way.......wish I could somehow objectively determine which is best in the long run.