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Insurance Premiums Could Soar, Thanks to Health Care Deform

twig's picture

According to a new study for the Ohio Department of Insurance:

The Patient Protection and Affordable Care Act (PPACA) could cut the number of uninsured Ohio residents by 790,000 in 2017, but it also could increase premiums for the 735,000 residents who have individual coverage by more than 55%.

(emphasis added)

Actually, the 55% increase is the low end of the predicted increase.

"...the price of individual health insurance coverage might rise about 55% to 85%, excluding the impact of medical inflation...."

If the insurance companies are getting millions of new customers -- many of them young and in good health -- shouldn't the rates be going down, since the risk is being spread over a larger pool? Just wondering ...


Submitted by jawbone on

honest and accurate, he referred to it as a health insurance REFORM bill, which was actually a profit protection plan for the Big Health Industry Players.

He called it health care reform when he was in bamboozle the voters mode.

Stephanie's picture
Submitted by Stephanie on

-- since at least 2009.

When renewing health insurance at my work in Oct 2009, (was the bill already passed by Oct?) the rates & copays went up a LOT more than before. I asked the insurance guy that year why such a big rate increase and he said because of the new health ins. bill.

And I thought WTF, the bill doesn't even go into effect for 4 years!

Of course the cost has always been going up, but since 2009 it's been ridiculous.

twig's picture
Submitted by twig on

who have insurance through an employer. Nice!

The bill passed the House in March, 2010 (the Senate had already passed it), so maybe insurance companies were jumping the gun. Or knew the fix was in. Or the CEOs had yacht payments due ... or all of the above?

Anyway, it's interesting that even with an employer who pays part of the insurance cost, people are getting clobbered on premiums. What happened to bending the cost curve? Or is it just bending in the wrong direction?

Stephanie's picture
Submitted by Stephanie on


My (former) employer used to cover all employees under a temporary disability policy, that the company paid for, with no employee contribution. Most employees didn't even know that they had this coverage, until they announced the ending of the coverage.

Only one person (to my knowledge) had used the coverage in the past, and then only because when she had a serious medical problem & had to be off work for a few months -- well, she went to the personnel guy and asked what her options were. Otherwise, she wouldn't have even known about this coverage. But she did get some income while she was unable to work, due to this policy.

So the company decided to eliminate the coverage, because it was too costly for them. Somewhere around the time all the rates started skyrocketing.

Of course, trickle (piss) down followed. The employees were offered the option of buying their own temp disability coverage -- out of your paycheck, no employer contribution --, and depending on how much you pay, that's how much and how long the coverage lasted.

The attitude of the company when this came up was thus: well, it's not that hard to have to support yourself w/out a job for a few months -- everybody has 3-4 months of $ stashed away, no? -- so they didn't think it would a hardship or problem for anyone -- cuz it wasn't for them.

Like I said, piss down.

Since I posted my earlier comment I came across the info that the bill didn't pass til 2010, like you say. So, jumping the gun, the fix was in, yacht payments due -- all of the above in my opinion.

Submitted by jawbone on

About a month earlier than previous years.

Yesterday I got my Medicare RX plan increase: 12%, from $34.50 to $38.60. Not that bad, but two of my drugs are not in the formulary, so I get no reimbursement for them. One of my nasal sprays for my chronic sinus problems, even in the generic version, is considered Tier 3 and is costly. Since February I've had only two prescriptions covered by my RX plan, but, in a way it's a mandate since joining later on means a penalty and thus higher monthly premiums.

I called re: whether the new cost for my Medigap Supplemental (Plan F) was available, and it is not. Nor will it be available until late October, so two weeks or so of the decision time is useless.

I asked the rep if there was any information about possible surcharges or excise tax on Plans C and F and if AARP was doing anything about Obama's proposal to add them as part of his deficit reduction plan he's giving to the Special Committee. She knew nothing about it, but was fully aware of the Special Committee.

When I told her I could give her a link to read about it, she was very interested, saying she would bring it up at their next information meeting.

I spent quite a bit of time yesterday trying to find more detail on what Obama is proposing, but what I wrote in Details, with devils in them is about all I could find. One article did say the surcharge on Plans C and F would be either an additional 30% of the Medicare Part B premium (auto deducted from SS checks) OR 15% added on to the Medigap supplemental policy premium. For me, either an additional $35 or $46 each month, based on this year's Medigap premium.

It's not clear that seniors covered by retiree health insurance which covers their prescriptions and many copays will be hit with this sucharge/excise tax. Since the goal is to make seniors pay more out of pocket, it might be considered.

When I was first looking into Medicare, I was told by an adviser at the town's senior center, primarily a tax guy, that signing up for SocSec earlier could result in some Medicare premium cost savings going forward as there is a percentage cap on how much can be deducted from SS checks.

I didn't pay that much attention to what he said* as I didn't see much application to my situation. But I've been wondering if that percentage cap might need to be re-legislated, or maybe that's why they might have the supplemental plan providers collect the surcharge/excise tax.

*Anyone familiar with what I'm trying to describe?