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Old 04-19-2013, 02:43 PM   #21
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The price isn't going up for everyone, I never said that. Prices will go up for those with HDHP/HSA plans and younger/healthier people, while prices will generally go down for the older/sicker people who are already paying high rates. The idea of all policies being terminated on 12/31/13 or upon policy renewal in 2014 is relatively new. It has not been confirmed by insurance companies publicly yet, but from internal sources through the grapevine, I have heard that from more than one company.
I have been reading information about this too. But this was quoted information from insurance policy groups, not any inside information. I was under the impression that the insurance companies weren't so much dumping the plans as that the Act itself and the way it was written will make them non-compliment. I read that through a technical loophole companies can renew the policies and then you will be able to hang onto it, through the end of the yearly renewal process in 2014. Some companies were looking to do that from what I understood, as it would help short term profit margins.
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Old 04-19-2013, 02:47 PM   #22
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I have been reading information about this too. But this was quoted information from insurance policy groups, not any inside information. I was under the impression that the insurance companies weren't so much dumping the plans as that the Act itself and the way it was written will make them non-compliment. I read that through a technical loophole companies can renew the policies and then you will be able to hang onto it, through the end of the yearly renewal process in 2014. Some companies were looking to do that from what I understood, as it would help short term profit margins.
The late-2014 renewals are being talked about by a lot of companies. Aetna has already said they will offer this for group policies, so groups may elect to renew in December 2013 instead of their regular renewal date in 2014. This will keep them from getting hit with bigger increases until the end of 2014 even if they have to swallow a smaller increase by using an early renewal date option. For example, a group could buy a policy in July 2013 which would normally renew in July 2014, but the company will allow them to renew in December 2013 which will push the renewal for PPACA compliance back to December 2014.

Whether this will be allowed for individual plans is still being debated and HHS has not issued official regulations on that yet as far as we know.
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Old 04-19-2013, 02:48 PM   #23
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Originally Posted by dgoldenz

$11.9k deductible HSA plans are not going to be qualify as metal plans. They don't have a 60% actuarial value and the "catastrophic" (a.k.a. HSA) plans available under the metal tiers are only available to people under age 30 or with insurance costs over 9.5% of income. Unqualified HSA plans may be available outside the exchange but it would incur the same penalty as not having any insurance, and the existing policies are still going to be terminated.

Believe me, I hope it doesn't happen this way. I have over 400 clients on the books and if all of the policies are terminated this law is probably going to cost me half my book of business.
I have read on more than one occasion that plans may be available outside the exchanges, and that some companies have said they would offer them. Do you think this means they will be high deductible plans? Would they be underwritten? If that is what this means, I will very seriously consider one of these and pay the fine if it is a significant cost savings to me.
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Old 04-19-2013, 02:51 PM   #24
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I have read on more than one occasion that plans may be available outside the exchanges, and that some companies have said they would offer them. Do you think this means they will be high deductible plans? Would they be underwritten? If that is what this means, I will very seriously consider one of these and pay the fine if it is a significant cost savings to me.
Plans outside the exchange will not be medically underwritten (as far as we know under current rules), but if they are not metal plans you would still be subject to the penalty. Pretty stupid to make people with HSA plans pay a penalty and restrict the availability of them to people under age 30 or with insurance cost over 9.5% of income (both of which are least likely to buy an HSA plan in the first place). That's just my opinion, but I'm sure many here will agree with that.
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Old 04-19-2013, 02:56 PM   #25
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Originally Posted by dgoldenz

Plans outside the exchange will not be medically underwritten (as far as we know under current rules), but if they are not metal plans you would still be subject to the penalty. Pretty stupid to make people with HSA plans pay a penalty and restrict the availability of them to people under age 30 or with insurance cost over 9.5% of income (both of which are least likely to buy an HSA plan in the first place). That's just my opinion, but I'm sure many here will agree with that.
What would be the benefit or advantage of even offering or taking a policy outside of exchange then?
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Old 04-25-2013, 07:28 PM   #26
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Plans outside the exchange will not be medically underwritten (as far as we know under current rules), but if they are not metal plans you would still be subject to the penalty. Pretty stupid to make people with HSA plans pay a penalty and restrict the availability of them to people under age 30 or with insurance cost over 9.5% of income (both of which are least likely to buy an HSA plan in the first place). That's just my opinion, but I'm sure many here will agree with that.
Humana would not answer the question, "What is the actuarial value of my policy?" Can they really not know this information yet?
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Old 04-27-2013, 06:48 AM   #27
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Humana would not answer the question, "What is the actuarial value of my policy?" Can they really not know this information yet?
Not sure if this is related to actuarial value, but when I applied for a $5,000 deductible policy with BCBS a few months ago, I got a letter saying the premium rate "may have been influenced" by a report provided by Optum. I got a copy of the report, which was a one page thing stating that the chances of me incurring more than $5,000 in costs in one year were 35%.
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Old 04-27-2013, 07:07 AM   #28
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Not sure if this is related to actuarial value, but when I applied for a $5,000 deductible policy with BCBS a few months ago, I got a letter saying the premium rate "may have been influenced" by a report provided by Optum. I got a copy of the report, which was a one page thing stating that the chances of me incurring more than $5,000 in costs in one year were 35%.
Wow. A percentage determined by some obtuse formula of which you have no understanding and will never be explained or revealed to you? Kinda like your credit score? I wonder what the name of this "score" is?
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Old 04-27-2013, 08:01 AM   #29
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Not sure if this is related to actuarial value, but when I applied for a $5,000 deductible policy with BCBS a few months ago, I got a letter saying the premium rate "may have been influenced" by a report provided by Optum. I got a copy of the report, which was a one page thing stating that the chances of me incurring more than $5,000 in costs in one year were 35%.
Wow, I never would have guessed the chances being that high. Throw out my costs incurred of being born, along with NyQuil and Tylenol, and I bet I haven't spent $5000 on health costs my entire life of almost 50 years.
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Old 04-27-2013, 03:09 PM   #30
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Wow. A percentage determined by some obtuse formula of which you have no understanding and will never be explained or revealed to you? Kinda like your credit score? I wonder what the name of this "score" is?
You didn't hear this from me, but the report referred to it as "demographic risk score".
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