Anthem CT 47% Rate Increase on Individual

[ziggy29]

You mean just one large risk pool? That would make everything a lot simpler.

On the contrary; I think he's suggesting we should ditch "group insurance" and all shop around for individual policies. Which is great if you're young and healthy, and not so great otherwise. And those who are young and healthy today will not always be young and may not always be healthy.

 

[dgoldenz]

You mean just one large risk pool? That would make everything a lot simpler. I think that's one of the reforms we're trying to pass, although it seems we're going about it the same way a drunk walks home from the bar - staggering every which way with sudden lurches left and right. We also may end up like the drunk ... in a ditch somewhere.

Basically, yes, but the individual market would be the "one large group." If it were only the individual market with full underwriting and allowing for a national high risk pool would make things a lot simpler. Employers could contribute to some type of health account similar to an HSA to allow employees to buy whatever coverage they wanted and set aside the rest for healthcare. There could be a tax-free exemption level on contributions with the rest taxable. The extra taxes collected would probably be enough to cover the subsidization of a high risk pool for the uninsurable. Anything left over at retirement age could be pulled out of the account or used to pay Medicare premiums. Would work pretty well, but that's just my opinion.

See how I wrote that in one paragraph? Didn't even take me 2700 pages.

 

[Dawg52]

BCBS

Just received my annual premium notice and it was up only $4/mo. Same as last year. I thought for sure it would go out the roof with all the changes that have been made, such as unlimited lifetime benefits.

Glad I can still afford my daily med's.

 

[MichaelB]

Just received my annual premium notice and it was up only $4/mo. Same as last year. I thought for sure it would go out the roof with all the changes that have been made, such as unlimited lifetime benefits.

Glad I can still afford my daily med's.

Good. Here's to hoping you are the first of many!

 

[ziggy29]

Just found out our share of our Megacorp premium will go from $97 to $146 a month next year. Hardly an amount to complain about compared to many here, but still represents a 50% increase in the employee-paid portion from this year. I think it's mostly because Megacorp is passing most of the increase on to us and not absorbing the same percentage of premium increase as in years past. (Our plan was barely changed by the reform legislation earlier this year.)

That's for the HDHP/HSA option which comes with some HSA employer contribution. The traditional PPO option is going to be over $410 a month for employee plus spouse and about $590 for full family.

 

[REWahoo]

Just got a notice of premium increase from BC/BS for my $5,000 deductible individual policy. This is my last year on the "open market" before becoming medicare eligible.

I've had the policy for 5 years and it has increased each year: 8%, 7%, 9%, 15%, and this year 28%. Thank goodness Congress passed that health care reform bill. No telling what my increase would have been without it.

 

[MichaelB]

Just got a notice of premium increase from BC/BS for my $5,000 deductible individual policy. This is my last year on the "open market" before becoming medicare eligible.

I've had the policy for 5 years and it has increased each year: 8%, 7%, 9%, 15%, and this year 28%. Thank goodness Congress passed that health care reform bill. No telling what my increase would have been without it.

Ouch. Notice the trend line there. Hopefully Medicare will still be there for you.

 

[Dawg52]

Just got a notice of premium increase from BC/BS for my $5,000 deductible individual policy. This is my last year on the "open market" before becoming medicare eligible.

I've had the policy for 5 years and it has increased each year: 8%, 7%, 9%, 15%, and this year 28%. Thank goodness Congress passed that health care reform bill. No telling what my increase would have been without it.

I've also had my policy for 5 years and have averaged a 5% annual increase. Higher the first couple of years, but almost nothing the last 2 years. Of course I'm a young buck who takes his daily med's like a good boy.

 

[MichaelB]

Lets see. My premium in 2007 $900.89. For the same policy, my premium in 2010 $1933.45.

So, what else is new?

Just got my 2011 increase notice. Another 17.6% to $2274.77. Now in 4 years it is 2.5 times higher.

I can think of many witty and sarcastic comments but I think I'll just go walk the dog instead. That always helps.

 

[dgoldenz]

Just got my 2011 increase notice. Another 17.6% to $2274.77. Now in 4 years it is 2.5 times higher.

I can think of many witty and sarcastic comments but I think I'll just go walk the dog instead. That always helps.

Yikes...of course, if someone had bothered to add to the PPACA bill that you could move from plan to plan within the same company and keep your original risk class (keeping same deductible or higher), you'd probably be paying a lot less. But that would make sense! We can't have that.

One of my clients is paying $3k/month right now, if they could just move to a different plan from the new generation of them and keep the same risk class they could save $15,000/year.

 

[huusom]

I think your agent may have his tin foil hat on. The claims variation in the small group and individual market is much higher than the large group market. The larger the group, the greater the spreading of risk. The smaller the group, the greater the chance a few claims can have a massive impact on the overall group loss ratio for the year. A group of 5 people with one person having $1 million in cancer treatments will be a big loss for the insurance company. A group of 50,000 people with one person having $1 million in claims won't even make a dent in the loss ratio. Unless you're looking at the 60+ age range, individual market premiums are almost always lower than group.

Why don't insurance companies create a group call "INDIVIDUAL" and problem is solved. To me, this logic of spreading the risk does not make sense.

By the way, this new group "INDIVIDUAL" will be created when the health exchange program took place in 2014 (if nothing changes).

 

[dgoldenz]

Why don't insurance companies create a group call "INDIVIDUAL" and problem is solved. To me, this logic of spreading the risk does not make sense.

By the way, this new group "INDIVIDUAL" will be created when the health exchange program took place in 2014 (if nothing changes).

Because nobody would pay the rates for this group....how many families do you know that can fork out $1500/month for health insurance?

 

[ERD50]

Because nobody would pay the rates for this group....how many families do you know that can fork out $1500/month for health insurance?

Ones with more than $1500/month in HC costs would sign up. Oooops, that 'solution' creates another problem, doesn't it?


-ERD50

 

[M Paquette]

Ones with more than $1500/month in HC costs would sign up. Oooops, that 'solution' creates another problem, doesn't it?


-ERD50

I don't know why anyone would pay those outrageous rates when they can get free care at the ER.

Stay tuned for another episode of "When Good Intentions Go Bad"...


But seriously, rates are high, medical costs are high, and both are going higher. It's sort of built into the system. I fully expect my insurance costs for DW and I to cross $35,000 a year by the time we hit 65, and what happens past that point is anyone's guess.

 

[youbet]

Just received my annual premium notice and it was up only $4/mo. Same as last year. I thought for sure it would go out the roof with all the changes that have been made, such as unlimited lifetime benefits.

Glad I can still afford my daily med's.

My employer subsidized retiree coverage went up only $4 as well. But they did raise the deductible and max out of pocket a bit too. Generally, I'm happy it wasn't much worse.

They did point out in the cover letter that retiree plans ARE NOT covered by the changes mandated in the recent healthcare legislation. I didn't know that.

 

[Mulligan]

As a new retiree who just started individual insurance plan 4 months ago, I read with concern all these posts of high cost premiums. I currently have a $5500 deductible HSA plan. It only costs $72 a month. I am a MO resident and am 46 years old. How are the premiums so vastly different in the individual market? Or are they going to stick it to me next? If I had to pay some of the rates quoted by people here in this forum, I'm afraid my retirement would be short lived.

 

[Buckeye]

My HDHP/HSA yearly premium (for me and DH) with megacorp went from $1530 per year to $1750. $3000 deductible, 80/20 after deductible met, $6,000 out-of-pocket max with megacorp kicking about $1100 into the HSA. Free preventative care. Other plans much more expensive. Literature stated employee healthcare premiums would be 25% of the total cost of the policy this year which accounts for virtually all of the increase.

I wanted to contribute the max amount ($6150) to my HSA this year but I was informed by HR my max amount is only about $4500. I thought there was only two HSA contribution levels (family and individual) but apparently that is not the case when it's an employer policy. Anyone ever heard of this limit?

 

[Buckeye]

Unless you're looking at the 60+ age range, individual market premiums are almost always lower than group.

So why does the 60+ age group pay less? I assume because they don't have as many claims but I never would have guessed that.

 

[MichaelB]

My HDHP/HSA yearly premium (for me and DH) with megacorp went from $1530 per year to $1750. $3000 deductible, 80/20 after deductible met, $6,000 out-of-pocket max with megacorp kicking about $1100 into the HSA. Free preventative care. Other plans much more expensive. Literature stated employee healthcare premiums would be 25% of the total cost of the policy this year which accounts for virtually all of the increase.

I wanted to contribute the max amount ($6150) to my HSA this year but I was informed by HR my max amount is only about $4500. I thought there was only two HSA contribution levels (family and individual) but apparently that is not the case when it's an employer policy. Anyone ever heard of this limit?

Hi Buckeye. I suspect your HR may be misinformed.

HSA holders can choose to save up to $3,050 for an individual and $6,150 for a family (HSA holders 55 and older get to save an extra $1,000 which means $4,050 for an individual and $7,150 for a family)

In the past the rules were a bit more complex, but now either your plan is HSA or not, and if so, you are eligible to contribute as stated above. You don't need your HR folks to even get involved in your HSA account - you can open with any one you choose.

 

[Buckeye]

Hi Buckeye. I suspect your HR may be misinformed.
In the past the rules were a bit more complex, but now either your plan is HSA or not, and if so, you are eligible to contribute as stated above. You don't need your HR folks to even get involved in your HSA account - you can open with any one you choose.

I thought there was only two contribution levels (individual and family) for the HSA but our company literature/website has 3 levels which are individual, family, and employee and spouse/partner. The individual and family contribution amounts match the 2 levels I've seen everywhere but HR insists there is a third level ($4600) for employee and spouse/partner. I did not make HR provide me a citation but I need to. I calculated I could contribute another $1550 over their contribution plus what I am allowed to have taken out of my paycheck. I don't want to run afoul of the IRS and put too much in but I also don't want to miss the opportunity to max out my contribution.

 

[ERD50]

My employer subsidized retiree coverage went up only $4 as well. But they did raise the deductible and max out of pocket a bit too. Generally, I'm happy it wasn't much worse.

They did point out in the cover letter that retiree plans ARE NOT covered by the changes mandated in the recent healthcare legislation. I didn't know that.

I thought AARP was all for this bill? Looks like they dropped the ball ( or maybe they didn't know what was in the bill until after they passed it either?)!

-ERD50

 

[MichaelB]

I thought there was only two contribution levels (individual and family) for the HSA but our company literature/website has 3 levels which are individual, family, and employee and spouse/partner. The individual and family contribution amounts match the 2 levels I've seen everywhere but HR insists there is a third level ($4600) for employee and spouse/partner. I did not make HR provide me a citation but I need to. I calculated I could contribute another $1550 over their contribution plus what I am allowed to have taken out of my paycheck. I don't want to run afoul of the IRS and put too much in but I also don't want to miss the opportunity to max out my contribution.

Your understanding of the contributions levels is correct. One for individuals ($3050) and one for families ($6150) with a $1000 additional for us gray hair folk. There is no other category as defined by Treasury rules. Their web-site is helpful.
Treasury HSA U.S. Treasury - Health Savings Accounts (HSAs)
Treasury HSA FAQs U.S. Treasury -HSA Frequently Asked Questions

Up 'till 2007 HSA contributions were variable and there were more rules and complexity. Perhaps your HR is just not updated. Here are the rule changes http://www.ustreas.gov/offices/public-affairs/hsa/pdf/n-08-52.pdf

Perhaps your HR is making an HSA contribution in your name as part of the health plan. (just speculating) Every HSA contribution needs to be reflected on IRS form 5498-SA and on your 1040, so they would need to provide one and those funds would have to be available to you.

The employee + partner contribution level needs to be referenced. If such a thing does exist would you mind posting back here? I am as perplexed as you.

 

[dgoldenz]

So why does the 60+ age group pay less? I assume because they don't have as many claims but I never would have guessed that.

The 60+ age bracket in a group plan is more than likely paying the rates of a 40-45 year old since most groups are based on average employee age or total claims experience, where the average overall is probably lower than your average 60-64 year old. If they were to compare their group premiums based on someone younger's age to what they would pay for individual market insurance at their current 60-64 age, the group would probably be cheaper unless they were in very good health.

 

[Buckeye]

Perhaps your HR is making an HSA contribution in your name as part of the health plan. (just speculating) Every HSA contribution needs to be reflected on IRS form 5498-SA and on your 1040, so they would need to provide one and those funds would have to be available to you.

The employee + partner contribution level needs to be referenced. If such a thing does exist would you mind posting back here? I am as perplexed as you.

I am counting my employers contribution of about $1100 in the total to make $6150. Here is the original response I received from HR which leaves me $1550 under the $6150 cap after including both our contributions which will total $4600:

Your HSA contribution is capped at $4600 because you are on a employee and spouse/domestic partner plan, not a family plan. Family plans have a premium of $2,685.57, significantly higher than the employee and spouse/d.p. premium of $1,762.41. Because your current plan's premium is lower, the contribution amount to the HSA is also lower. This is regulated by the IRS, although they do not do a good job of explaining this on their website. They do regulate additional levels of coverage other than just individual and family, but given the uniqueness of these plans they don't specifically address it on their general website. The only way to increase your contribution amount is to upgrade to the larger family plan.

 

[dgoldenz]

Your HSA contribution is capped at $4600 because you are on a employee and spouse/domestic partner plan, not a family plan. Family plans have a premium of $2,685.57, significantly higher than the employee and spouse/d.p. premium of $1,762.41. Because your current plan's premium is lower, the contribution amount to the HSA is also lower. This is regulated by the IRS, although they do not do a good job of explaining this on their website. They do regulate additional levels of coverage other than just individual and family, but given the uniqueness of these plans they don't specifically address it on their general website. The only way to increase your contribution amount is to upgrade to the larger family plan.

Never heard of that before, but it sounds like your HR department did some checking on it. On an individual market plan, a husband/wife is considered a "family" and allowed to contribute the full family amount. I don't know why it would be capped at $4600 when each individual person on a separate policy can contribute $3150 and you have two people on a husband/wife plan.