Bottom line on health insurance changes for pre medicare

[MichaelB]

Those of us who already have some sane level of actual health insurance won't see much of a rate change, just the usual hikes. In many states you can go to the state insurance commissioners site, and look at the filings for proposed rate changes and the affected policies well in advance. (The required lead time for notifying the state officials varies from state to state.)

One factor that will result in premium changes is the new limit on age based differentials. The new maximum is 3X between the lowest and highest rates. My current policy the difference is 10X.

 

[bondi688]

Perhaps you can share a comment or snippet so the rest of us don't have to click to find out what's in the link.

I extracted the lead line. I did not earlier because it is a short article, and it is better if one reads the article and decide himself/herself whether the writer has any agenda.

 

[gerrym51]

One factor that will result in premium changes is the new limit on age based differentials. The new maximum is 3X between the lowest and highest rates. My current policy the difference is 10X.

the health differential is the biggest reason people below 55 are seeing big rate increases
there are other factors as well but this is the biggest

 

[pb4uski]

I have a feeling I am going to get screwed in this whole health care deal in 2014. I currently have a HDHI plan that has a $5.950 stacked deductible ($5,950 for me and for DW so our maximum out-of-pocket cost is $11,900). We currently pay about $630 a month. We are both healthy and have had the plan for 18 months and have yet to make a claim.

I got a letter from my provider the other day indicating that deductibles for 2014 will be limited to $2,000 for an individual and $4,000 for a family.

So it seems like the promise of "if you’ve got health insurance, you like your doctors, you like your plan, you can keep your doctor, you can keep your plan. Nobody is talking about taking that away from you" was a lie because I like my HDHI plan and would like to keep it. Second, given deductibles are less than half what they were before it seems all but inevitable that my premiums will increase, and probably dramatically increase.

I guess I'll wait and see and structure my income in 2014 to take advantage of any subsidies to mitigate the effect of the increase.

 

[gerrym51]

I have a feeling I am going to get screwed in this whole health care deal in 2014. I currently have a HDHI plan that has a $5.950 stacked deductible ($5,950 for me and for DW so our maximum out-of-pocket cost is $11,900). We currently pay about $630 a month.

I got a letter from my provider the other day indicating that deductibles for 2014 will be limited to $2,000 for an individual and $4,000 for a family.

So it seems like the promise of "if you’ve got health insurance, you like your doctors, you like your plan, you can keep your doctor, you can keep your plan. Nobody is talking about taking that away from you" was a lie because I like my HDHI plan and would like to keep it. Second, given deductibles are less than half what they were before it seems all but inevitable that my premiums will increase, and probably dramatically increase.

Wait and see I guess and structure my income in 2014 to take advantage of any subsidies to mitigate the effect of the increase.

i thought older plans were gradfathered. the 2000/4000 is the minimum with obamacare

 

[pb4uski]

i thought older plans were gradfathered. the 2000/4000 is the minimum with obamacare

I didn't sound that way in the letter I received. I hope you are right and they glossed over it in the letter.

 

[MichaelB]

I have a feeling I am going to get screwed in this whole health care deal in 2014. I currently have a HDHI plan that has a $5.950 stacked deductible ($5,950 for me and for DW so our maximum out-of-pocket cost is $11,900). We currently pay about $630 a month. We are both healthy and have had the plan for 18 months and have yet to make a claim.

I got a letter from my provider the other day indicating that deductibles for 2014 will be limited to $2,000 for an individual and $4,000 for a family.

So it seems like the promise of "if you’ve got health insurance, you like your doctors, you like your plan, you can keep your doctor, you can keep your plan. Nobody is talking about taking that away from you" was a lie because I like my HDHI plan and would like to keep it. Second, given deductibles are less than half what they were before it seems all but inevitable that my premiums will increase, and probably dramatically increase.

I guess I'll wait and see and structure my income in 2014 to take advantage of any subsidies to mitigate the effect of the increase.

You are assuming a large premium increase along with a reduced deductible. That might not be the case. Many things can happen with policies that already have employer subsidies, but high deductible policies are eligible under the new guidelines, and I suspect policies that are not underwritten that cover middle age individuals are not going to increase in price.

i thought older plans were gradfathered. the 2000/4000 is the minimum with obamacare

This is new. Do you have a source you can link to?

 

[ERhoosier]

i thought older plans were gradfathered. the 2000/4000 is the minimum with obamacare

As I understand it, under ACA the deductible limits for employer-sponsored plans are $2000/$4000 according to Sec 1302c2Ai

http://www.gpo.gov/fdsys/pkg/PLAW-111publ148/html/PLAW-111publ148.htm

However for individual plans it seems deductibles (self/family) could range up to $5,000/$10,00 OOP max (deductibles + co-pays) according to Sec 1302 c1A (which references IRS Code 223c2A

26 USC § 223 - Health savings accounts | Title 26 - Internal Revenue Code | U.S. Code | LII / Legal Information Institute

But we'll see when final reg's are issued as we near the Oct '13 opening date for the HI Exchanges.

 

[MichaelB]

The rule clarification published 2/25 (see here http://www.gpo.gov/fdsys/pkg/FR-2013-02-25/pdf/2013-04084.pdf ) has limits of $6250/12500 for individual and large group policies. The smaller limits of $2k/4k are for small group plans and still subject to change.

I'll wait until I see actual policy and premium information on the exchanges before drawing any conclusions.

 

[ERhoosier]

The rule clarification published 2/25 (see here http://www.gpo.gov/fdsys/pkg/FR-2013-02-25/pdf/2013-04084.pdf ) has limits of $6250/12500 for individual and large group policies. The smaller limits of $2k/4k are for small group plans and still subject to change.

I'll wait until I see actual policy and premium information on the exchanges before drawing any conclusions.

Thanks for the link. Page 12847 states the $6250/$12,500 figures for 2014 total out-of-pocket expenditures under HD individual plans ("For illustrative purposes only"). I did not see figures for max deductible limits for individual (e.g. non HSA-eligible) plans. The $2/$4k deductible limit for small group plans is mentioned on same page but without a stated OOP max. Confusing

Amazing to me how many ACA details, even those apparently written in the actual law, are being 'clarified' by HHS. We really do need to wait and see how this all plays out.

 

[Felix Mulier]

Amazing to me how many ACA details, even those apparently written in the actual law, are being 'clarified' by HHS. We really do need to wait and see how this all plays out.

I'm not waiting. I'm plugged into updates from Home | HealthCare.gov

As far as HHS clarifying the law, I'm not surprised. Just as in a company, someone (like the the CEO) declares the "what" we're going to do; the "how" we get there is left to the implementation team (in this case HHS).

To survive at megacorp for as long as I did, I learned that when somebody declared a new path, I tried to get ahead of the curve, learn as much as I could, and position myself to get whatever I could out of it as quickly as possible.

You may want to start looking at the "Health Insurance Marketplace" to see what options will be available to you.

From About the Health Insurance Marketplace | HealthCare.gov

When key parts of the health care law take effect in 2014, there’ll be a new way to get health insurance: the Health Insurance Marketplace. The Marketplace is designed to help you find health insurance that fits your budget, with less hassle.

Every health insurance plan in the new Marketplace will offer comprehensive coverage, from doctors to medications to hospital visits. You can compare all your insurance options based on price, benefits, quality, and other features that may be important to you, in plain language that makes sense.

There will be a Federal "Exchange" and some (not all) states will have Exchanges as well. I'm hoping for the best.

 

[shotgunner]

My understanding of how the HI subsidy in the PPACA works is plans have to be "Qualified", and HDHP plans would not be considered "Qualified".

Under the PPACA I will qualify for a subsidy and since my cost is 9.5% of my Modified Adjusted Gross Income Uncle Sam picks up the rest of the cost regardless of how much it is.

The "Silver" plan is a 70% actuarial plan. According the Kaiser site estimate my maximum annual out of pocket cost would be $4167 including premiums.

I too currently have an HDHP with a $5000 deductible. The silver plan 70% I believe is on the first dollar of cost minus any co-pay.

At the moment it looks to be a financial no-brainer for me to buy a Qualified plan through an exchange this fall, take advantage of the subsidy and enjoy lower overall annual HI costs than I am paying now, $447 monthly premium plus up to $5K (deductible) if I use any health care services.

If I am wrong I would appreciate becoming more informed.