Obamacare: Covered California's health plan prices soar
Source: San Jose Mercury News
SACRAMENTO -- Ending two straight years of average 4 percent increases, the state's health insurance exchange on Tuesday stunned consumers by announcing a 13.2 percent statewide average rate increase for those who buy 2017 health care plans through Covered California.
...
"We've known for a long time that 2017 would be a transition year,'' Peter Lee, the exchange's executive director, said during a late morning press conference. "We are seeing that happening, just as we predicted."
He blamed the increases on several factors, including rising prescription drug and health care costs, and the end of two federal "risk mitigation'' programs created under Obamacare, which expire in 2017.
The programs protect insurers from major, unexpected losses from offering health insurance on the exchanges.
Read more: http://www.mercurynews.com/health/ci_30144878/obamacare-covered-californias-health-plan-prices-soar
George II
(67,782 posts)Cryptoad
(8,254 posts)still beats the hell out of the 30% annual increase before ACA was created....
MadDAsHell
(2,067 posts)Cryptoad
(8,254 posts)tonyt53
(5,737 posts)There will be a bubble spike in rates for a couple of years, then they will level off or possibly go back down. The insurance companies are limited to 19% EBIT by the ACA.
yallerdawg
(16,104 posts)If you increase the prices of all covered products and services, doesn't that profit actually increase in dollar value, too?
19% of 2 million is better than 19% of 1 million, for example.
Where's the incentive to "cut costs" I wonder?
tonyt53
(5,737 posts)bemildred
(90,061 posts)cstanleytech
(26,319 posts)bemildred
(90,061 posts)The Congress can make them do whatever it likes, that is why they are so anxious to buy it.
cstanleytech
(26,319 posts)do you get around those limits without violating the constitution?
bemildred
(90,061 posts)It's called a subpoena.
cstanleytech
(26,319 posts)bemildred
(90,061 posts)Red Mountain
(1,737 posts)Lots of leverage for the buyer.
cstanleytech
(26,319 posts)andym
(5,445 posts)insurers. SMH.
MadDAsHell
(2,067 posts)Hoyt
(54,770 posts)awhile, and liked it as far as care, but it wasn't a lot cheaper than competitors. If I quit working again, will probably go back to Kaiser. Those who like choice of physicians, pharmacies, etc., won't be happy.
bemildred
(90,061 posts)Hoyt
(54,770 posts)bemildred
(90,061 posts)But that was back before the for-profit Insurance rackets got involved, and MDs were themselves business people and not employees. And back then it was called "Medicine" or being as Doctor, and not "Health Care".
Now what we have is boatloads of "specialists", all very expensive, none of whom knows all about you, and none of whom takes any responsibility for outcomes.
Go watch "Marcus Welby, MD" sometime.
Hoyt
(54,770 posts)You are right, docs aren't like that anymore and never will he unless you can afford a concierge type doctor. But that costs a good bit and if you get really sick, they aren't much help.
kimbutgar
(21,210 posts)I don't think that will happen. They might get granted a small increase though.
That said, my Mother in law who lives in Arizona said 4 health care companies are leaving the state. She is on Medicare but I see the rethugs in the state blaming the affordable care act.
Sancho
(9,070 posts)if the US wants either single payer or universal health care or some equivalent, then...
1.) health care workers will have to make less - likely 1/3 to 1/2 today's salaries
2.) some hospitals will have to be truly non-profit - and be funded by taxpayers or charity
3.) drugs and new technologies will have to be competitively priced, which may mean less patent protections for intellectual property
4.) public health care will likely be more inconvenient (there won't be a drug store and radiology clinic on every corner)
No matter what the "system" used to funnel money to pay for healthcare, the US is too expensive. Changing the system won't change the bottom line in most cases. If we want everyone covered, there will be some in the system who will be very unhappy even though it may be best for everyone in the long run.
ForPeace
(140 posts)We pay way more than other countries per capita because we have to support insurance companies on the back of the health care industry.
andym
(5,445 posts)Heathcare costs too much because we pay the providers and the supporting industries so much money.
Skittles
(153,194 posts)you'd have to be an idiot to not see that coming
Qutzupalotl
(14,333 posts)to put downward pressure on premiums.
elmac
(4,642 posts)as long as for profit is involved Obamacare will fail.
Red Mountain
(1,737 posts)premium might be?
I haven't.....just curious.
cynzke
(1,254 posts)Hoyt
(54,770 posts)a public option, I will bet you that premium will not be a lot less than private insurers -- Maybe 6 to 8% less at best. And like Medicare right now, you will still have insurance companies processing claims, making coverage decisions, answering patient questions, etc.
Now, if we make some serious changes like cutting provider payments to the bone; limiting diagnostic testing, drug choices, procedures that aren't likely to help, etc.; continuing copays; and more. I don't think most people have that in mind when they talk of Medicare for all, although we should be if we want lower costs. No matter what we do, it's never going to be cheap and people will still gripe.
forest444
(5,902 posts)But it'll take a near-total collapse of our health care system to force the public to understand that.
bemildred
(90,061 posts)I'm 71, one of my greatest ambitions at this point in my life is to have nothing to do with our "health care" system. I have seen it in action and it does not have jack shit to do with health. It is all about how much can be extracted from your wallet and from the government (which is also your wallet).
kcjohn1
(751 posts)Is for the government through its purchasing power regulate. Imagine market place where 300 million people can negotiate on drug prices? Right now Pfizer can tell pound sand because because each insurer is miniscule. Same with hospitals and doctors.
Hoyt
(54,770 posts)And, unless one is willing to tell a drug manufacturer, we will not approve your product at that price, the negotiations aren't going to save tons of money. Fact is, out of the $3 Trillion we spend annually, drugs are only $300 Billion. And almost every drug helps to reduce hospital costs, rehab costs, palliative care, etc., in other areas.
It will take a long time to make all the necessary changes work, but might as well start the transition. A Public Option is probably the best place to start.