ObamaCare Sticker Shock Set for 2017 Just as Planned

Some Silver Plan deductibles have risen above $7000 By Sen. John Barrasso Texas Insider Report: WASHIGTON D.C.  Health insurers submitted their requests for double-digit premium increases in the Obamacare exchanges next year. Families facing steep price hikes may be the lucky ones. Many Americans are being told they cannot renew their policy at any price. Even the administrations former point person for the health care law is conceding that American families could face sticker shock. Marilyn Tavenner once the head of the Centers for Medicare and Medicaid Services predicted in an interview with Morning Consult earlier this year that for 2017 the overall trend is going to be higher than we saw in previous years." • Insurance companies continue to release their planned premiums for next year with many requesting price hikes of 20 30 or 40. • Other companies are dropping out of the marketplaces entirely or raising deductibles so high that the coverage is useless. • Two-thirds of Americans say they would have difficulty coming up with the money to cover a $1000 emergency and some silver plan deductibles have now risen above $7000.

Big rate increases planned for 2017

Humana is planning to abandon the Obamacare markets in at least two states and UnitedHealth will leave Obamacare exchanges in all but a handful of states. According to the Kaiser Family Foundation there are more than 650 counties across the country where families will have only one choice for insurance in the exchanges next year. This accounts for entire states including Alaska Alabama and Wyoming. Additional rate increases and departures are likely. A recent survey by McKinsey & Company found that only 25 of health insurance carriers were profitable in the exchanges last year. Some businesses like Centene are making money in the exchanges by focusing on the poorest people who get the largest government subsidies. The companies are following the same business model they use on their Medicaid plans with narrow networks of doctors and hospitals. According to a recently released Associated Press poll two-thirds of Americans would have difficulty coming up with the money to cover a $1000 emergency. Many of the profitable companies in the exchanges survive by setting deductibles so high that the insurance is all but useless for many people. Centene intends to offer a silver plan next year that requires customers to meet a $7050 deductible before it would start paying benefits. Blue Cross of Idaho will offer a silver plan with a deductible of $6850. These policies are fundamentally no different from what the Obama administration used to call junk" insurance. Obamacare Hits Small Businesses Companies with 100 workers or more have had to deal with the burdens of the employer mandate since January 2015. As of January 2016 employers with 50 to 99 workers are also subject to the mandate. The requirement will increase pressure on small business owners and their employees. With wages stagnant across the economy this is bad news for millions of workers. According to a recent survey by ADP 52 of mid-sized business and 45 of large employers were unsure if they are at risk of violating Obamacare compliance rules this year. California The health insurance exchange in California touted by Obamacare advocates as a shining example of how well Obamacare works is estimating that premiums may rise by an average of 8 next year. Insurers are blaming the end of Obamacares risk mitigation programs. These programs were only intended to help the health care law get off the ground not to be permanent life support. Florida In Florida 15 health insurers are requesting rate increases for Obamacare individual plans that average 17.7. Another 15 companies have asked for increases averaging 9.6 for small group plans. Iowa Wellmark Blue Cross Blue Shield sent letters to 30000 customers in Iowa saying that it plans to raise premiums by 38 to 43 next year. Wellmark serves about 75 of the individual policies in Iowas health insurance market. The company attributed the rate increase request to the poor health of its subscribers and increasing medical costs. The company said it spent $1.27 for every dollar in premiums it collected last year for these customers. Another smaller health insurance carrier in the state Medica is requesting a rate increase of close to 20 on individual plans. Maine The Maine Bureau of Insurance posted insurer rate requests earlier this month. Rate hikes range from 14 to 22. The states co-op Maine Community Health Options is requesting an increase of 22.8 Harvard Pilgrim is requesting an increase of 18.7 Aetna 14.2 and Anthem Blue Cross Blue Shield a 14.1 increase. Maryland For this year state regulators granted CareFirst Blue Cross Blue Shield rate increases of 26. Now CareFirst is requesting an additional 16 increase for two of its plans next year. Cigna Health and Life Insurance Company requested a 29.8 increase and Kaiser Foundation Health Plan of the Mid-Atlantic States requested a 25 increase. New Hampshire Minuteman Health New Hampshires lowest-cost health plan and its second largest exchange participant requested a 45.2 premium hike. New Mexico New Mexico Health Connections is planning rate increases averaging more than 30 and as high as 34 for some plans. Presbyterian Health Plan also wants to raise rates an average of around 30. Blue Cross Blue Shield of New Mexico dropped out of the state exchange for 2016 when its rate requests were denied but now says it may return for next year. If it does it wants to raise premiums by up to 83 compared to what it charged last year. New York The New York Department of Financial Services has said that the average requested increase for all plans in states individual market is 17.3. United Healthcare of New York is asking for 45.6 more in 2017. Empire Health Choice has requested a rate boost of 25.3 affecting 64000 people in the state. North Shore-LIJ CareConnect is asking people to pay 29.2 more next year. Oregon Providence Health the largest individual market insurer in Oregon requested an average 29.6 rate hike for its plans in 2017. Providence attributes its request to the end of Obamacares reinsurance program as well as experience with its new risk pool enrollees have poorer health than expected. Moda Health Oregons second-biggest insurer is proposing a 32.3 premium increase. Oregons Health Co-Op is also asking for rate increases of 32. Tennessee Blue Cross Blue Shield of Tennessee the states largest insurer lost $311 million on Obamacare plans in its first two years. Though it has raised premiums by more than 60 since the law went into effect the insurer continues to lose money. The plan reportedly may request a rate increase this year even higher than the 36.3 the state allowed last year. Vermont Blue Cross Blue Shield and MVP in Vermont are requesting rate hikes of more than 8 for next year. Blue Cross cited increasing costs for medical care and prescription drugs as well as higher utilization of health care services. Virginia CareFirst Blue Cross Blue Shield in Virginia has proposed average increases of around 25 percent. Anthem HealthKeepers is seeking an average 15.8 rate increase Innovation Health a 16.6 increase and United Health a 9.4 rate increase. Washington In Washington state insurers requested an average rate increase of 13.5. Premera requested a 20 increase Community Health Plan 11.3 Bridegspan an increase of 10.5 and Lifewise an increase of 10.9.