Insurance companies rush to raise rates into the double-digits

By Catholic Online (NEWS CONSORTIUM)
1/7/2013
Catholic Online (www.catholic.org)

Sudden increases defeat purpose of Obama's health care reform

One of the chief objectives of President Barack Obama's health care reform was to make health insurance affordable for all Americans and prevent sudden increases in the cost of typical health care. This plan has appeared to backfired, as many insurance companies are raising their rates - some by as much as double-digit increases, to beat the looming deadline.

Critics, like Dave Jones, the California insurance commissioner and one of two health plan regulators in that state, said that without a federal provision giving all regulators the ability to deny excessive rate increases, some insurance companies can raise rates as much as they did before the law was enacted.

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LOS ANGELES, CA (Catholic Online) - California is expected to be hit especially hard by these increases. According to Dave Jones, the California insurance commissioner, some insurance companies could raise rates as much as they can before the law is enacted.

Expected to be hardest hit by the sudden rate increases, are small businesses and people who do not have employer-provided insurance and must buy it on their own.

Aetna is proposing rate increases of as much as 22 percent in California. Anthem Blue Cross could go as high as 26 percent and Blue Shield of California 20 percent for some of those policy holders, according to the insurers' filings with the state for 2013.

More troubling about these pending increases is that they arrive after a 39 percent rise sought by Anthem Blue Cross in 2010. This instance, in fact helped give impetus to the Affordable Care Act, which was passed the same year and will not be fully in effect until 2014.

In Florida and Ohio, insurers have been able to raise rates by at least 20 percent for some policy holders. The rate increases can amount to several hundred dollars a month.

The proposed increases compare with about four percent for families with employer-based policies.

Regulators are now required Under the health care law to review any request for a rate increase of 10 percent or more.

The review clearly demonstrates the striking difference between places like New York, one of the 37 states where legislatures have given regulators some authority to deny or roll back rates deemed excessive, and California, which is among the states that do not have that ability.

New York recently used its sweeping powers to hold rate increases for 2013 in the individual and small group markets to under 10 percent. In contrast, California can review rate requests for technical errors but cannot deny rate increases.

The double-digit requests in some states are being made despite evidence that overall health care costs appear to have slowed in recent years, increasing in the single digits annually as many people put off treatment because of the weak economy. PricewaterhouseCoopers estimates that costs may increase just 7.5 percent next year, well below the rate increases being sought by some insurers.

However -- the companies counter that medical costs for some policy holders are rising much faster than the average, suggesting they are in a sicker population. Federal regulators contend that premiums would be higher still without the law, which also sets limits on profits and administrative costs and provides for rebates if insurers exceed those limits.

Critics, like Dave Jones, the California insurance commissioner and one of two health plan regulators in that state, said that without a federal provision giving all regulators the ability to deny excessive rate increases, some insurance companies can raise rates as much as they did before the law was enacted.

"This is business as usual," Jones said. "It's a huge loophole in the Affordable Care Act," he said.

� 2013, Distributed by NEWS CONSORTIUM.

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Pope Benedict XVI's Prayer Intentions for January 2013
General Intention: The Faith of Christians. That in this Year of Faith Christians may deepen their knowledge of the mystery of Christ and witness joyfully to the gift of faith in him.
Missionary Intention: Middle Eastern Christians. That the Christian communities of the Middle East, often discriminated against, may receive from the Holy Spirit the strength of fidelity and perseverance.

Keywords: Health care reform, insurance, California, New York, illness, Dave Jones

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1 - 8 of 8 Comments

Roseann Graham
5 months ago
What did people think would happen? The only "sickness" is the malaise that caused everyone to vote for these politicians gain. We the People are being robbed blind by Barack Hussein Obama, Big Pharma, and the insurance lobby. Once the rates go up, they will never come down.
DLL
5 months ago
If health becomes so expensive no one can afford it,how is that better healthcare,obamacare or what ever? Emergency rooms still cannot turn away those needing emergency care. Are we all not going to be much worse off before all of this so-called healthcare reform? How much blood can come from a stone? Affordable healthcare was the plan of President Obama. Everyone was supposed to have exactly the same plan as the President and His Family. What happened to all the glorious promises? The Insurance companies are covering their posteriors. Costs of heal care are enough to break anyone's piggy bank without insurance and everyone knows it. In fact being insured is socialized medicine.
Rose
5 months ago
Barack intended for health insurance companies to go out of business. He spoke before SEIU years ago and said the whole country should be on a "government run, single payer health care system." This is what the uninformed voted for, I hope they enjoy it. I recently went to see my lung specialist. He told me to eat right, exercise and keep my weight down because that was about all the health care people of my age were going to get. I am 60 and working, so I AM still a producer. Look up "the complete lives system" created by Obama's medical adviser, Ezequiel Emmanuel.
But I agree with Mike, we are all here at this time and place for a reason, and that is where our hope is!
Mike
5 months ago
Here's what the article didn't say. There is no government health care Obama care wil be made up of private insurance companies who agree to Obama's stipulations on health care coverage. And the terms are this Insurance companies can only sell you the "fully loaded Cadillac" meaning the Obama care stipulations cover almost anything imaginable. They cannot sell you less coverage even if you don't need all the coverage. AND Obama care stipulations say any insurer who wants to be in the exchange cannot turn anyone down regardless of pre-existing medical conditions and they cannot be charged a higher premium.This make s the whole thing very costly for insurance companies and expensive for the consumer. An estimate by the Kaiser Foundation says a family of 4 making $50,000 a year gross income will pay $16,000 for Obama care. IF they can pay the monthly premiums they will be credited on their income tax $12,000. A family of 4 making $94,000 or more pays the $16,000 and gets no credit back. the poorest will be extended medicare benefits. IF YOU purchase insurance from a carrier outside of the exchange it will cost much less and you can choose an insurer that doesn't pay for other peoples abortions. BUT ALL who do not purchase from the Obama care exchange will pay a fine. The first year will be $695.00 per policy and will go up every year. Even with the fine insurance outside the exchange is still much cheaper (without the tax credit).

If the U.S. government was private enterprise it would be out of business now this same government who's president never owned a business or served in the military, but was only a community organizer is telling insures and us how to run our businesses and our lives.
Government control of business is socialism. Obama IS a Socialist. Socialism has failed in almost every place economically were its' been tried and FAILS ON ALL OTHER ASPECTS EVERYWHERE because it gives power to rulers who TAKE AWAY OUR FREEDOM. Einstein said the definition of insanity is to keep doing the same thing over expecting a different result.

We were all born in this time and place for a reason every catholic and every Christian should pray and ask God what his will is for them in this place called The United States of America and find out what we can do to stop the power grab lunacy. And as the mother of Jesus said at Cana, "Do whatever He tells you."

The Peace of Jesus to you all
Mike
5 months ago
Sorry, to finish, If you purchase medical insurance outside of the Obamacare exchange you will HAVE to pay a fine. The first year will be $695.00 per policy and will go up every year.

Government control of business is socialism Obama is a socialist who wants to control business and your life. Our government would have gone out of business along time ago if it were a private enterprise and now Obama who has never owned a business or served in the military, but has only been a community organizer is telling us and insurance companies what to do and if you don't YOU WILL PAY. Fellow Catholics and Christians pray about what God wants YOU to do to stop the power grab lunacy, And then as The mother of Jesus and Cana said, "DO what ever HE tells you"

The Peace of Jesus to you all.
Mike Mayen
5 months ago
Christian Health Care Sharing ministries are getting a huge surge in new members because of this. It bewilders me why people wouldn't jump on board. I myself use Samaritan, but the other two are just as good.
vance
5 months ago
This is what everyone was told back in 2009 when this amoral act was debated upon. Now Obamacare has arrived and many deceived Marxist Democrat Party lemmings will be crying foul. Many people are going to suffer as a result. We were all warned.
Irma
5 months ago
Da, small buisness are going to hurt that means less jobs.

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