According to an article in the New York Times [7/4/15] by Robert Pear health insurance companies are seeking rate increases of 20-40% or more. According to the author insurance companies claim their new customers under the Affordable Care Act turned out to be sicker than expected. Federal officials say they are determined to see that the requests [for rate increases] are scaled back.
As an example of the new rate request in Minnesota are for a 54% increase. They give eleven states as examples with an average of 23% in increased insurance premiums to the patients.
President Obama on a trip to Tennessee this week said consumers should put pressure on the state insurance regulators to scrutinize the proposed rate increases. What happened to the claims by the administration that the federal government would force down insurance costs to the patient? By the way some of my friends keep telling me that the “unexpected” increase in health insurance premiums are caused by doctor’s, hospitals and medical supply companies. There are no such claims in this New York Times article.
What is cited as an excuse for these outrageous premium increases is “costs were underestimated” by health care professionals and the insurance industry. You have got to be kidding! Finally the article concludes with the observation that “inadequate rates could result in companies [insurance] going out of business in the middle of the plan year, or being unable to pay the claims.” Don’t forget there is a subsidy in the ACA law for the health insurance companies if they fail [and they have] to meet their profit goals. The ACA subsidy are paid for by you and me, the taxpayers of this country! Repeal Obamacare! Consider the plan I offered in the Self Defense Politics – 1- Health Care!