Saturday, June 01, 2013

ANS -- Unexpected Health Insurance Rate Shock-California Obamacare Insurance Exchange Announces Premium Rates

Here's an article on Obamacare.  Shocking, just shocking!  In the best way....
It's a short article, but just talks about young people.  What about rates for us old folks?
Find it here:   

Rick Ungar  

Rick Ungar, Contributor

I write from the left on politics and policy.
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5/24/2013 @ 4:25PM |742,494 views

Unexpected Health Insurance Rate Shock-California Obamacare Insurance Exchange Announces Premium Rates

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Sarah Kliff at The Washington Post reveals just how far off the prognosticators have been.

"The Congressional Budget Office predicted back in November 2009 that a medium-cost plan on the health exchange – known as a "silver plan" – would have an annual premium of  $5,200. A separate report from actuarial firm Milliman projected that, in California, the average silver plan would have a $450 monthly premium."

The actual costs?

Kliff continues, "On average, the most affordable "silver plan" – which covers 70 percent of the average subscriber's medical costs – comes with a $276 monthly premium.[That's $3312 per year.] For the 2.6 million Californians who will receive federal subsidies, the price is a good deal less expensive…"

As you can see, the actuaries missed by a huge percentage.
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To see how younger Californians will make out when they shop on the public exchanges, take a look at the graphs Kliff provides here. You may be very surprised to learn that the meaningful insurance that you are now required to purchase is far more reasonably priced than you imagined.

There is a moral to this story for those open to receive the message.

If you are among the many Americans who have bought into the fear and loathing that has been the campaign against Obamacare, you just might wish to reconsider. With every passing day, the various myths, legends and lies put forward by those with a political axe to grind, TV or radio rating to be raised or vote to be purchased, are falling victim to the facts.

Of course, if you continue to find it more useful to hate the Affordable Care Act than to recognize the benefit of what this program offers to you and your family, nothing I can say is likely to change your mind.

But, accept it or not, the reality is that the early report card on Obamacare­at least in those states willing to give the law a chance to succeed­is looking pretty darn good. So good, in fact, that the data reveals that even a supporter such as myself was off the mark when predicting significantly higher rates for the youngest among us.

This is one time that I could not be happier to be proven wrong.

UPDATE: A number of readers have responded to this article by asking the question, "If the California exchange is so good, why have United Healthcare, Aetna AET -3.31% and Cigna CI -2.65% decided not to participate?"

It is true that these companies are not going to participate in the CA CA -0.91% healthcare exchange. And while this makes a great meme for the opponents of healthcare reform, there is something they are not telling you ­these three companies have never been players in the California individual insurance market so there was never any expectation that they would participate. While each of these companies are a major factor in group health insurance-both large and small- their combined participation in the individual market in CA has not been more than 8 percent for a great many years. Meanwhile, the other large insurance companies that have participated in the individual policy business in California have comprised 85 percent of the market. Each of these insurers are participating on the exchange. So, things are not always as they may seem which is why it is so important to read beyond the headline.

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