First look at next years rates

[Texas Proud]

OK... so my BCBS has cancelled my plan.... they now have out the plans they are going to have for next year... did a quick check on the rates.....

AND....

It looks like a 17% rate increase for next year.... have not looked that close to see how the plan compares to the current one...

This is on top of an over 30% increase last year from the previous year....

Overall a 50% rate increase in 2 years.... and the first year plan was the one that was the best...

I might look to see if I should go with and HSA plan.... will give me some room to convert some funds to ROTH....

However, I probably will not owe taxes anyhow.... just reduce the amount of credit I get back...

 

[truenorth418]

My BCBS bronze plan with HSA in NY state is increasing over 10% and the deductible is going from $3,000 to $4,000. It seems these plans are becoming basically catastrophic plans. In that spirit, I am considering dropping BCBS and going with a less expensive carrier. I might have to change primary care doctors, but since the coverage is all standardized now I'm not sure I will be giving up much.


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[Texas Proud]

My BCBS bronze plan with HSA in NY state is increasing over 10% and the deductible is going from $3,000 to $4,000. It seems these plans are becoming basically catastrophic plans. In that spirit, I am considering dropping BCBS and going with a less expensive carrier. I might have to change primary care doctors, but since the coverage is all standardized now I'm not sure I will be giving up much.


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My bronze deductible is $6K... so it is basically catastrophic right now...


I also do not have any other cheaper option... BCBS is the cheapest by far... probably even with the rate increase...

 

[Mulligan]

My bronze deductible is $6K... so it is basically catastrophic right now...


I also do not have any other cheaper option... BCBS is the cheapest by far... probably even with the rate increase...

Texas, take some comfort in knowing the government wouldn't probably say you had a 17% increase. They would say part of that is just for being a year older than last year, thus you would pay more anyways. Feel any better knowing that?
My local paper didn't give any numbers, but it said be prepared for 20% increase, so I may be giving you some competition in the rate increase game.


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[Fermion]

Well technically past a certain age I would expect insurance rates to increase far faster than inflation. The odds of a 55 year old having a major medical problem are much higher than that of a 45 year old. Just to toss a number out there, I would bet there is a 100% increase in amount of money spent on 55 year olds than 45 year olds. During that 10 year period inflation might only be 2 to 3% per year. Thus really, having a policy increase 10% a year or so doesn't seem so outrageous.

 

[Ian S]

Well technically past a certain age I would expect insurance rates to increase far faster than inflation. The odds of a 55 year old having a major medical problem are much higher than that of a 45 year old. Just to toss a number out there, I would bet there is a 100% increase in amount of money spent on 55 year olds than 45 year olds. During that 10 year period inflation might only be 2 to 3% per year. Thus really, having a policy increase 10% a year or so doesn't seem so outrageous.

You are right, when I had my old pre-Obamacare individual plan, the plan year started October 1 but my birthday was in August so I would get a premium increase solely due to my age increase for the month of September and that would immediately be followed by an overall plan increase starting in October. They were both typically significant numbers. Plus by the time you're in your mid-50s, you generally have something wrong with you so it was hard to change companies or go to a better plan. If you've ever had to go through the process of underwriting, you'd know why it was so hard. Now of course, you can't be denied for existing conditions while before it was standard operating procedure.

 

[pb4uski]

Texas, take some comfort in knowing the government wouldn't probably say you had a 17% increase. They would say part of that is just for being a year older than last year, thus you would pay more anyways. Feel any better knowing that? ....

True but if you compare the published 2015 premium and published 2016 premium for someone the age that TP will be for the purpose of his 2016 coverage then you would get the actual annual increase and exclude the portion of the increase due to being a year older.

 

[pb4uski]

I feel blessed.. my 2016 premium is 0.5% higher than my 2015 premium... about $2 a month. Premiums are not age adjusted in our state so it is all increase.

 

[Mulligan]

True but if you compare the published 2015 premium and published 2016 premium for someone the age that TP will be for the purpose of his 2016 coverage then you would get the actual annual increase and exclude the portion of the increase due to being a year older.

Despite the facts, I am sure I will remain stubborn and call the entire increase "inflation" and disregard my increase in age.
Morning newspaper said the rates wont be published until Monday morning on website. So I do not know if they will be out today as mentioned previously or tomorrow.


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[bingybear]

My bronze deductible is $6K... so it is basically catastrophic right now...

I understand the feeling, but the deductible does not technically make it a catastrophic plan. I would assume the plan complies with ACA rules and covers well visits like physicals.
But I understand and share the issue with understanding the cost of health insurance. We have not found affordable healthcare yet.

 

[marko]

What year does the 'affordable' part of ACA kick in?

 

[pb4uski]

I understand the feeling, but the deductible does not technically make it a catastrophic plan. I would assume the plan complies with ACA rules and covers well visits like physicals.
But I understand and share the issue with understanding the cost of health insurance. We have not found affordable healthcare yet.

My catastrophic plan is only marginally different from a bronze plan... I've had both.

Deductible:$6,550 vs $6,850
OOP Maximum: $6,550 vs $6,850
Preventative care: similar
Primary care or mental health visits:$0 after deductible vs 3 free, then deductible, then $0
Specialist visits, ER, inpatient: both deductible then $0
Rx OOP maximum: the same, $1,300
Select wellness drugs: 25% generic/40% preferred/60% non-preferred vs deductible then $0
Monthly premium:$402 vs $229 per person

To me the difference in coverage is negligible compared to the difference in premiums as we are both healthy.

 

[MichaelB]

What year does the 'affordable' part of ACA kick in?

This again?

Healthcare hasn't been affordable in the US for decades, as costs have risen at more than 2X the rate of inflation since 1970. Most folks haven't paid directly for their insurance, they receive it as a benefit and don't see the price. The Affordable Care Act brings the price out into the open for all to see.

US employers are paying similar prices, but at least get the benefit of a tax deduction. The only thing new about the high cost of healthcare in the US is the new-found awareness, and it is far too late in the cost cycle to expect this cost to decline.

 

[Mulligan]

This again?

Healthcare hasn't been affordable in the US for decades, as costs have risen at more than 2X the rate of inflation since 1970. Most folks haven't paid directly for their insurance, they receive it as a benefit and don't see the price. The Affordable Care Act brings the price out into the open for all to see.

US employers are paying similar prices, but at least get the benefit of a tax deduction. The only thing new about the high cost of healthcare in the US is the new-found awareness, and it is far too late in the cost cycle to expect this cost to decline.

Well Michael it had always been cheap in underwritten states that only allowed healthy people to buy it. I remember 3 years ago checking to see what a 62 year old would pay for insurance in my state. $123 for a $5500 deductible. What a bargain and no subsidy! And what do you think the actual odds were of anyone actually getting approved for it was? 1 in a 100 maybe?


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[Texas Proud]

I understand the feeling, but the deductible does not technically make it a catastrophic plan. I would assume the plan complies with ACA rules and covers well visits like physicals.
But I understand and share the issue with understanding the cost of health insurance. We have not found affordable healthcare yet.

Yes, it covers those, but doesn't catastrophic plans cover them also?


However, our doc said that well visits are few and far between... if you ask one thing that is not part of a well visit, you are then out of it and it is now just a doctor visit you pay for.... she does very few well visits....

 

[Texas Proud]

Texas, take some comfort in knowing the government wouldn't probably say you had a 17% increase. They would say part of that is just for being a year older than last year, thus you would pay more anyways. Feel any better knowing that?
My local paper didn't give any numbers, but it said be prepared for 20% increase, so I may be giving you some competition in the rate increase game.


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I know you were joking.... but remember that there is a maximum and minimum rate they can charge for all ages.... I believe it is 3X.... so the young folks are going to be paying this increase also.... not really age related...

 

[ERD50]

This again?

Healthcare hasn't been affordable in the US for decades, as costs have risen at more than 2X the rate of inflation since 1970. Most folks haven't paid directly for their insurance, they receive it as a benefit and don't see the price. The Affordable Care Act brings the price out into the open for all to see.

US employers are paying similar prices, but at least get the benefit of a tax deduction. The only thing new about the high cost of healthcare in the US is the new-found awareness, and it is far too late in the cost cycle to expect this cost to decline.

So you seem to agree that the word "Affordable" is misleading, and maybe it should have been called the "Added Transparency Care Act"?

I disagree that it is 'far too late in the cost cycle to expect this cost to decline'. There have been many suggestions that could help reduce costs. And the promoters of the bill said many times over that we would see savings, so I guess they disagree with you as well.

-ERD50

 

[MichaelB]

So you seem to agree that the word "Affordable" is misleading, and maybe it should have been called the "Added Transparency Care Act"?

I disagree that it is 'far too late in the cost cycle to expect this cost to decline'. There have been many suggestions that could help reduce costs. And the promoters of the bill said many times over that we would see savings, so I guess they disagree with you as well.

-ERD50

I think attributing anything to the name is pointless, and assigning specific objectives to individuals associated with the legislation is (or leads to) partisan political discussion, which is not allowed. Let's leave it there, eh?

 

[pb4uski]

+1

 

[ERD50]

I think attributing anything to the name is pointless, and assigning specific objectives to individuals associated with the legislation is (or leads to) partisan political discussion, which is not allowed. Let's leave it there, eh?

That's fine.

I also was informed that my current BCBS plan would be eliminated at the end of the year, but I don't think they have opened up the new plans for me to review yet.

I need to check, I hope I don't have to go through another doctor switch again (my previous doctor was only in some very high proceed plans). It took a considerable amount of effort just to determine if a doctor I was considering actually was in the plan I was looking at or not. It seems it should be easy, but even when that doctor, their phone number and address was listed under that plan, it turns out that there is also some other twist about which 'group' they are in, and I needed help from a third party that my former-employer arranged to help with the transition. It took a few conference calls between us to get it straightened out. And if you need to do that with every plan you might consider, it turns into a lot of time and effort.

I figure a rate increase is practically a given, I'm concerned about all the other hoops to jump through.

-ERD50

 

[Mulligan]

I know you were joking.... but remember that there is a maximum and minimum rate they can charge for all ages.... I believe it is 3X.... so the young folks are going to be paying this increase also.... not really age related...

Yes, only joking and the only reason I feel I could do it is because I am sharing the same pain you are facing.


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[Ian S]

That's fine.

I also was informed that my current BCBS plan would be eliminated at the end of the year, but I don't think they have opened up the new plans for me to review yet.

I need to check, I hope I don't have to go through another doctor switch again (my previous doctor was only in some very high proceed plans). It took a considerable amount of effort just to determine if a doctor I was considering actually was in the plan I was looking at or not. It seems it should be easy, but even when that doctor, their phone number and address was listed under that plan, it turns out that there is also some other twist about which 'group' they are in, and I needed help from a third party that my former-employer arranged to help with the transition. It took a few conference calls between us to get it straightened out. And if you need to do that with every plan you might consider, it turns into a lot of time and effort.

I figure a rate increase is practically a given, I'm concerned about all the other hoops to jump through.

-ERD50

You've hit upon what I believe is one of the weak spots of the ACA: networks. Medal ratings don't take into account the breadth of the plan's network of doctors and facilities. The insurance companies have taken advantage of that by using smaller networks and woe unto ye should you need a doctor who is not in network! And be aware that the comfort implied by the cap on out of pocket costs is non-existent for out of network balance billings. The sky's the limit there. Sometimes you don't even have control over whether or not an out of network doctor sees you. An example would be if you're in a hospital which is in-network but has out-of-network doctors that it uses to treat you.

 

[Alan]

I received my open enrollment package from my ex-employer yesterday. The good news is that they won't be making any "structural changes" until 2017. The bad news is that this year's increase is 87% as they continue to move more of the costs to the retirees. They also state that from 1/1/2016 there will be no retiree insurance for new hires or re-hires. (They did away with the DB pension plan for everyone the year after I retired).

The plan for myself and DW is a PPO costing $687/month
.................... Network ......... Outside Network .......
Deductible $500/$1,500 ........ $1,000/$3,000
Out Of Pocket $2,000/$4,000 .. $4,000/$8,000
Coinsurance ... 20% ................ 35%
Office visit ... $30 .................. Deductible then coinsurance
Urgent care ... Deductible then coinsurance
Diagnostic X-Ray & Lab .. Deductible then coinsurance
Wellness visits ... pays 100% ....... Deductible then coinsurance


Everything else including Emergency Room, and Ambulance (when medically necessary) is deductible then coinsurance.

 

[mickeyd]

Man I am so glad that I am too old for Obamacare.

 

[brewer12345]

Ugh. I just window shopped my state's exchange. Our policy is still offered and the deductible and max OOP have not changed. However, the premium is up a bit over 20% versus the 2015 premium. It will not take more than a few years of this to put health insurance premiums out of reach for most people.


The challenge now is to figure out how much income to declare. My high paying contract gig is over at the end of the year, so I can essentially dial up anything I want. At a minimum it looks like we would want to stay under 260% FPL because that way the kids could go on a CHIP plan. Anyone have experience with CHIP plans?


Cripes, with the way premiums are shooting up it won't be long before I look for a permanent job again just to get employer-provided health insurance.