Peek at Florida Exchange Pricing

[MichaelB]

From this morning's Miami Herald Florida says health insurance prices will spike; feds disagree - Florida - MiamiHerald.com

In Florida, companies offering individual “metal” plans on the exchange include Aetna, Florida Blue, Cigna, Coventry Health Care of Florida, Florida Health Care, Health First, Health Options, Humana, John Alden Life Insurance (small group), Molina Healthcare and Time Insurance Co.

With 53 individual plans, Florida Health Care has the largest presence on the exchange with 80 individual and 36 small group plans. Florida Blue has filed 53 individual and 4 small group plans.
Silver Plan snapshot, according to estimates released Wednesday (average premium, before subsidies)

Aetna $422
Blue Cross Blue Shield $384
Cigna $437
Coventry $366
Florida Health Care $396
Health First $373
Health Options $400
Humana $315
Molina $411
Preferred Medical $385
Sunshine State $464

 

[Mulligan]

From this morning's Miami Herald Florida says health insurance prices will spike; feds disagree - Florida - MiamiHerald.com

I am curious as to why the vast majority of these releases only provide a meaningless average of a silver plan as it is not directed at any age. They have to know the breakdowns or they couldn't come up with this average. How am I supposed to be able to have an intelligent if not meaningless rant about my insurance costs going up with out an age breakdown.

 

[MichaelB]

I am curious as to why the vast majority of these releases only provide a meaningless average of a silver plan as it is not directed at any age. They have to know the breakdowns or they couldn't come up with this average. How am I supposed to be able to have an intelligent if not meaningless rant about my insurance costs going up with out an age breakdown.

Agree. I assume it is a midpoint price, but even that isn't much help. Didn't you get an offer from your insurer to sign up for another year with a (ehem) modest increase?

 

[Mulligan]

Agree. I assume it is a midpoint price, but even that isn't much help. Didn't you get an offer from your insurer to sign up for another year with a (ehem) modest increase?

That is part of the problem for me (along with maybe too much idle time?). They gave me a price increase this past month, but were absolutely silent on whether this policy will exist after Jan. 1. I did read that my carrier Anthem in my state is going "all out" in a partnership with Walgreens in promoting the exchanges. Sounds like a company eager to switch us over to the exchange rates, but that is just a guess at this point.

 

[Midpack]

All I can say is I am pleasantly (naively?) surprised by the rates from states who have published so far - less than half what I would have expected, and yes I understand silver and the various plans. I'll be anxious to see the federal exchange rates (unless I've missed them).

 

[W2R]

I am curious as to why the vast majority of these releases only provide a meaningless average of a silver plan as it is not directed at any age. They have to know the breakdowns or they couldn't come up with this average. How am I supposed to be able to have an intelligent if not meaningless rant about my insurance costs going up with out an age breakdown.

Right, I think we really don't have a clue yet as to what it will cost. For some reason, I thought it would be group insurance, like employer-provided insurance, in that younger people and older people would all pay the same. Silly me!

Luckily I do have group insurance (federal employee/retiree insurance) plus Medicare for now, so I haven't been following the evolution of the PPACA rates as they are revealed.

 

[MichaelB]

All I can say is I am pleasantly (naively?) surprised by the rates from states who have published so far - less than half what I would have expected, and yes I understand silver and the various plans. I'll be anxious to see the federal exchange rates (unless I've missed them).

Florida is a federal exchange. This isn't so much an announcement as a pre-statement of intentions. Although I would love to get coverage at the prices they showed this morning, I'm sure mine will be much higher, though still a bit lower than what we are paying now.

Right, I think we really don't have a clue yet as to what it will cost. For some reason, I thought it would be group insurance, like employer-provided insurance, in that younger people and older people would all pay the same. Silly me!

Luckily I do have group insurance (federal employee/retiree insurance), for now.

We should all be so lucky as to have one single price for everyone.

 

[gauss]

.... I'll be anxious to see the federal exchange rates (unless I've missed them).

I believe each state that participates in the federal exchange will have independent rates from other states that participate there.

Although it is a federally managed group of exchanges, the rates are still 'regulated' on a state by state basis.

-gauss

 

[Mulligan]

Florida is a federal exchange. This isn't so much an announcement as a pre-statement of intentions. Although I would love to get coverage at the prices they showed this morning, I'm sure mine will be much higher, though still a bit lower than what we are paying now.

We should all be so lucky as to have one single price for everyone.

I truly believe ultimately that all the rhetoric around it will ultimately be proven largely correct. It just depends on which variable you want to put the spin on the most. 1) already heavily regulated states will be pleasantly surprised with the exchange rates 2) people getting subsidies will overall be pleased 3) the healthy people currently getting underwritten rates in the red states that have had little regulation will take a good beating 4) healthy males in underwritten policies will get smacked the hardest 5) people who get to move off the high risk pools in their states will benefit substantially. The "premium payment chairs" have just been moved around a bit, unfortunately the overall costs, not so much.

 

[MichaelB]

I truly believe ultimately that all the rhetoric around it will ultimately be proven largely correct. It just depends on which variable you want to put the spin on the most. 1) already heavily regulated states will be pleasantly surprised with the exchange rates 2) people getting subsidies will overall be pleased 3) the healthy people currently getting underwritten rates in the red states that have had little regulation will take a good beating 4) healthy males in underwritten policies will get smacked the hardest 5) people who get to move off the high risk pools in their states will benefit substantially. The "premium payment chairs" have just been moved around a bit, unfortunately the overall costs, not so much.

If I had to bet, I'd guess the premiums for individuals and small groups would tend toward the same levels large groups enjoy today, perhaps a bit higher due to administrative overhead. Outliers with see their prices gravitate to the median - people with much lower premiums will see theirs rise, people with much higher rates will see theirs fall, and people who can't buy health insurance will now be able to. On aggregate, across the US, there really is no reason a basic policy should suffer from such wide differences as cross subsidization is removed.

Of course, the extreme examples, both high and low, will represent 100 times more media noise than affect real people. But this will hurt people paying less today.

 

[Silver]

MichaelB....thanks so much for posting this.

 

[MRG]

Thanks for the info. I agree the rates are not much value without age, the average looks pretty good to me.

I'm curious to know when the feds plan on annoucing rates for the other states that opted out.

I guess we all just wait, but I'm getting anxious.

MRG

 

[Htown Harry]

I'm curious to know when the feds plan on annoucing rates for the other states that opted out.

I guess we all just wait, but I'm getting anxious.

MRG

All of the accounts and quotes I have seen predict the feds will publish premiums for federal exchange states in September.

I believe it's only been about 30 days since premium proposals were due from the insurers via the states.

A group of (republican) congressmen has demanded that HHS release the numbers sooner. Don't hold your breath.
http://www.alexander.senate.gov/publ...d-dd7d53d1bd10

 

[teejayevans]

Florida is a federal exchange. This isn't so much an announcement as a pre-statement of intentions. Although I would love to get coverage at the prices they showed this morning, I'm sure mine will be much higher, though still a bit lower than what we are paying now.


We should all be so lucky as to have one single price for everyone.

They had a Aug 1 deadline they had to meet, so they must have met it.
The rates aren't that much higher than what I pay now with COBRA.

I'm not so sure younger crowd would agree with your last statement
TJ

 

[alaska55]

We should all be so lucky as to have one single price for everyone.

Why would anybody want that that! Next we can ask that everybody can get pay the same.

 

[teejayevans]

If these numbers are true, then it seems only those with pre-existing conditions or those who qualify for a subsidy will use the exchange. I just check and can get a individual policy for <$300.
TJ

 

[Mulligan]

If these numbers are true, then it seems only those with pre-existing conditions or those who qualify for a subsidy will use the exchange. I just check and can get a individual policy for <$300.
TJ

If I understand you correctly Teejay, those policies will only be in force until Dec. 31. They are of little value long term. They will close up and then they will dump you onto the exchange. While you may be able to buy off exchange it will essentially be same policy, same price. Thanks to the Act, these policies on sale now have essentially become short term gap policies.

 

[teejayevans]

If I understand you correctly Teejay, those policies will only be in force until Dec. 31. They are of little value long term. They will close up and then they will dump you onto the exchange. While you may be able to buy off exchange it will essentially be same policy, same price. Thanks to the Act, these policies on sale now have essentially become short term gap policies.

This was a regular individual policy, I thought Obama said if you have a policy you can keep it?
TJ

 

[MichaelB]

This was a regular individual policy, I thought Obama said if you have a policy you can keep it?
TJ

Insurance companies are free to continue offering many of the policies their customers currently subscribe, but they are not required to do so, and they can increase prices as state insurance regs permit.

 

[Mulligan]

This was a regular individual policy, I thought Obama said if you have a policy you can keep it?
TJ

To further Michael's thought. You also had to have the individual policy by March of 2010. Prior to that if your policy meet all guidelines it could stay in force as long as insurance company was providing it. If you purchased after that date, you will be an automatic contestant for Obamacare.

 

[NW-Bound]

Just today, I received a letter from my insurer, saying that my existing plan will be continued. I need to study PPACA provided plans more when they are available for my state. It may be difficult to compare. One should not go for just low premium alone.

By the way, we also received $43 from the insurer as the premium rebate. I remember a poster said his/her rebate was about 10 times as much. My insurer is apparently not so greedy. For several years, we nowhere approached the $10K deductible, but having done so 2 years in a row, first for my son's freak infection and now for me, I have been happy with the coverage.

 

[teejayevans]

...those policies will only be in force until Dec. 31

To further Michael's thought. You also had to have the individual policy by March of 2010. Prior to that if your policy meet all guidelines it could stay in force as long as insurance company was providing it. If you purchased after that date, you will be an automatic contestant for Obamacare.

I'm not sure what you mean...are you saying I'll be FORCE into the exchanges (as it turns out, this is what I want, I'm just trying to get insurance to cover me until the end of the year and which point I'll switch, but only because of the subsidies), I just want to clarify for others who might read this.
TJ

 

[Mulligan]

I'm not sure what you mean...are you saying I'll be FORCE into the exchanges (as it turns out, this is what I want, I'm just trying to get insurance to cover me until the end of the year and which point I'll switch, but only because of the subsidies), I just want to clarify for others who might read this.
TJ

Yes, your policy will have to end, and then your next policy will have to be purchased on the exchange (or other approved site, though prices will be the same). Now to muddy the waters a bit, due to the wording of the law, an insurance company can extend your coverage on an existing policy this year, through the end of next year if it so chooses. So it is possible you could stay on a plan you purchase this year through the end of next year. The insurance company I am sure will provide you your options before the end of the year I would think. I am still waiting my options from my carrier as they haven't announced anything yet.

 

[teejayevans]

Yes, your policy will have to end, and then your next policy will have to be purchased on the exchange (or other approved site, though prices will be the same). Now to muddy the waters a bit, due to the wording of the law, an insurance company can extend your coverage on an existing policy this year, through the end of next year if it so chooses. So it is possible you could stay on a plan you purchase this year through the end of next year. The insurance company I am sure will provide you your options before the end of the year I would think. I am still waiting my options from my carrier as they haven't announced anything yet.

This may be a stupid question, but do ALL insurance companies HAVE TO participate in the exchanges, or can they opt out? For example I didn't see UHC in the list of companies in the list.
TJ

 

[Htown Harry]

This may be a stupid question, but do ALL insurance companies HAVE TO participate in the exchanges, or can they opt out? For example I didn't see UHC in the list of companies in the list.
TJ

There have been news accounts stating that recognizable companies are choosing not to offer exchange accounts in some states, but typically a state where their market share is low.

An insurance company must first register and comply with state insurance laws to offer a policy in that state. (nothing new here.)

Subject to the exchange's confirmation that a proposed policy meets ACA requirements, an insurance company may choose to offer that exchange policy in one or all of that state's geographic service areas, as defined by the exchange. The premiums can vary geographically.

Taken to an extreme to illustrate, I believe the smallest offering for a NY insurer might be to offer a single "silver" policy for the NYC metro area, with no variation offered for deductibles, co-pays, etc.

For the exchanges and states that show HI rate application traffic at the state Insurance Department, it's typical to see a dozen insurers offering over a hundred policy variations. Four metal plans times perhaps 5 geographic areas equals 20 distinct policy offerings from one insurer, before taking into account the possible permutations for deductibles, etc.