Tuesday, May 26, 2015

Who Can Afford A 51 Percent Rate Increase On Health Insurance Premiums?

By Coleen Elkins
If you are under age 65 and have health insurance you need to read this, share it and discuss it. 
No matter what state you live in you will see a substantial rate increase in your health insurance premium for 2016. So far New Mexico weighs in at 51 percent announced by Health Care Service Group. Wellmark of South Dakota has asked for a 43 percent rate increase. Assurant one of America's oldest insurers will either be sold or close their doors at the end of the year. 
It is uncertain if these rate increase will be approved by state and federal government. When carriers are reporting losses with like Blue Cross Blue Shield at $141 Million how can we not pay attention? The Obama administration can ask carriers to "explain their rationale" but if it is red ink what more do you have to explain? 
The carriers are citing higher costs for pharmaceuticals, and sicker patients for the rate increases. 
The "Affordable Care Act" had planned on attracting a younger healthier base of enrollees to support the expense of treating those that are chronically ill. That has not happened. In fact only one quarter of the enrollees fall into the younger healthier category. 
Not every state is going to face numbers referenced above but it doesn't matter, because this can not sustain itself. The question is how is the government prepared to sustain it or are they? 
This is a historical milestone and is going to heat up the debate over Obamacare on both sides of the isle over the next 18 months.