The First Wave Of Increases Rolls In
Were you stunned when you opened the letter from your health insurance company and saw what your plan is going to cost in 2013. You probably thought to yourself, “Wasn’t Healthcare Reform supposed to prevent health insurance rate increases like this?” The truth, unfortunately for you and many people, is in the details about how the federal government regulates healthcare through ObamaCare, and the management of healthcare programs at the state level. We’ll cover these details along with SOLUTIONS you can use to escape the rate increase you face.
In the NBC Nightly News video below, Lisa Myers asks why health insurance rates are increasing at double digit rates when healthcare costs are expected to go up by 7.5% in 2013. Watch the video to learn the disturbing effects of the rate increases.
Nightly News | Aired on January 08, 2013
Several states including California, Florida and Ohio are facing double-digit health insurance rate increases. On Tuesday, the California insurance commissioner deemed one proposed group insurance increase unreasonable and accused companies of trying to maximize profits. NBC’s Lisa Myers reports.
The 20% increases that Californian’s are seeing is supposedly caused by insurance company profiteering, according to Dave Jones, California’s insurance commissioner. However the insurance industry justifies the increases due to increased medical costs, fewer healthy people in the insurance plans because of the recession, and increased costs and extra plan benefits as a result of the Affordable Care Act (ACA). Which of these positions is correct? Or could both be true?
At the beginning of 2013, new taxes take effect as a result of ObamaCare. These 2.3% taxes on medical device manufacturers are expected to be passed on to consumers through the healthcare value chain. Medical device manufacturers will raise their prices to health insurance companies, who then pass that increase on to consumers. Plus health insurance companies are increasing rates this year to compensate for the new ACA tax on insurance companies that begins in 2014.
The looming tax on the insurance industry will cost health-insurance providers $8 billion in 2014, then $14.3 billion in 2018 and a total $100 billion over the next 10 years, according to the congressional Joint Committee on Taxation.
Insurance companies say they can start charging the higher premiums now because some polices bought in 2013 extend into 2014.
Check out the stupid result congress created with the Medical Loss Ratio regulations on page 2 below.