Obamacare Is Already Forcing Private Insurers To Lower Their Premiums

[ProSense]

Obamacare Is Already Forcing Private Insurers To Lower Their Premiums

By Sy Mukherjee

Looks like Obamacare is more “on track” than “train wreck.”

In a striking illustration of the promise that the health law holds for consumers, two Oregon private insurers vying to sell coverage on the state’s Obamacare insurance marketplace this October are reevaluating their opening bids for the plans’ monthly premiums. The reason? A side-by-side regional comparison of all proposed 2014 premiums for Oregon marketplace plans became public on Oregon’s marketplace website Thursday, and showed that the two insurers’ planned monthly premiums were far higher than other proposals. That raised fears among the companies’ officials that their plans wouldn’t be competitive on the market later this year, leading them to proactively request a rate reduction — and as more of Obamacare is implemented, state insurance commissioners expect that trend to continue:

“Posting rate comparisons company-by-company is a taste of what is to come,” says Cheryl Martinis of the Oregon Insurance Division.

Judging by the reaction, there’s already an impact.

Providence Health Plan on Wednesday asked to lower its requested rates by 15 percent. Gary Walker, a Providence spokesman, says the “primary driver” was a realization that the plan’s cost projections were incorrect. But he conceded a desire to be competitive was part of it.

A Family Care Health Plans official on Thursday said the insurer will ask the state for even greater decrease in requested rates. CEO Jeff Heatherington says the company realized its analysts were too pessimistic after seeing online that its proposed premiums were the highest.

“That was my question when I saw the rates was, ‘Can we go in and refile these?’” he said. “We’re going to try to get these to a competitive range.”

Although some insurers have been using Obamacare as an excuse to hike premiums despite record profits, such rate hikes have been rarer — and less extreme — since the law’s passage. And to emphasize, this is all happening before the state has had a chance to review and approve initial plan rates — much less launch the actual marketplace. After the exchange opens up, consumers will have even more detailed information about marketplace plans, including the ability to compare — not just rates — but actual benefits offered on the plans side-by-side.

That’s particularly significant because much of the current variation in health plan premiums stems from rampant health care price opacity and wildly divergent benefits offered on different health plans — a status quo that won’t last in the Obamacare era since the law requires qualifying insurance plans to offer a base level of ten “essential health benefits,” including prescription drug, mental health, and maternity services. That means that Americans will be able to go online and figure out whether a plan costs more because it actually provides more robust benefits, or because an insurance company is just trying to gouge prices and maximize profits. Insurance offered on the marketplaces will be separated into Bronze, Silver, and Gold plans based on how generous their offered coverage is, making consumer comparisons between similar health plans simple.

- more -

http://thinkprogress.org/health/2013/05/10/1994331/obamacare-forcing-insurers-lower-premiums/

Sunlight works wonders.

Study: Obamacare May Reduce Premiums In New York
http://www.democraticunderground.com/10022804988

[postulater]

1. I wonder how it will affect deductibles and copays.

That may be shifted onto the person who purchases the insurance. No big deal for those with HRA, HSA or FSA accounts maybe, but there will still be lots who don't have the benefit of one of those accounts.

[ProSense]

2. There are

"I wonder how it will affect deductibles and copays. That may be shifted onto the person who purchases the insurance."

...no copays for preventive care and out-of-pocket expenses are capped.

[postulater]

6. Well, one small step for peoplekind.

Maybe.

[ProSense]

8. Yup, and there is also

the expansion of Medicaid.

Kentucky Will Expand Medicaid Under Obamacare, Cutting Its Uninsured Population By More Than Half
http://www.democraticunderground.com/10022824456

[postulater]

9. I'm in Wisconsin. Still unsure what Walker is going to do with our BadgerCare plans.

They aren't great, but they do help lots of people a bit. My wife is a nurse-midwife and recommends Vitamin D to most of her women. BadgerCare doesn't pay for it so most women don't buy it. Sometimes BC pays for some pre-natals though.

Where would we be without women's health services for lower income people? It's just unthinkable that there are people who would deny that service (not just the vitamins) and claim to be human.

[ProSense]

10. I had almost forgotten about that clown. n/t

[freshwest]

3. The right spews hatred of the ACA because they know the eventual goal is UHC.

It has the rebates built in and is going forward on cutting drug company profits. They're pushing a new scare campaign to get seniors to complain about changes because of the money they will lose and what will hurt the enemies of UHC.

[ProSense]

11. Here's another nutty comparison:

One of these things is not like the other
http://www.democraticunderground.com/10022793199

[freshwest]

12. OMG. Their attempts to smear would be laughable, if what they're defending wasn't so heinous.

[Enrique]

4. thank you Max Baucus

I'm skeptical that legislation written by Max's insurance executive staffer is going to benefit consumers, but now that it's law I should just hope my suspicions are wrong.

[ProSense]

5. Baucus

"thank you Max Baucus

I'm skeptical that legislation written by Max's insurance executive staffer is going to benefit consumers, but now that it's law I should just hope my suspicions are wrong."

...had a hand in consolidating the various bills, including the one written by Ted Kennedy, and the WH proposals. He did try to derail a number of provisions that made it into the bill. The final bill contains provisions written by numerous Senators.

Health centers to help uninsured individuals gain affordable health insurance coverage
http://www.democraticunderground.com/10022820842

Thank you Bernie Sanders.

[Scurrilous]

7. K & R