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Thread: The Next Shoe To Drop:

  1. #1
    Member steven's Avatar
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    The Next Shoe To Drop:

    Yesterday, the Obama Administration’s Centers for Medicare and Medicaid Services released a six-page report predicting that Obamacare could cause premiums to increase for nearly two-thirds of small- to medium-sized businesses. “This results in roughly 11 million individuals whose premiums are estimated to be higher as a result of the ACA and about 6 million individuals who are estimated to have lower premiums,” CMS writes. But CMS’ projections almost certainly understate the problem, one that will begin to affect millions of workers in the second half of 2014.

    The CMS premium report was a requirement imposed by Congress on the administration under the Department of Defense and Full-Year Continuing Appropriations Act of 2011. That law mandated that CMS “provide an estimate of the number individuals and families who will experience a premium increase and the number who will see a decrease” as a result of the Affordable Care Act.

    But CMS only looked at one cost-increasing Obamacare provision: community rating. And they only looked at it for individuals employed by businesses with fewer than 100 employees: what’s called the “small group market.”

    But there are other costly requirements that CMS didn’t directly address. For example, Obamacare includes a silly excise tax on health insurance premiums that will get passed onto consumers in the form of higher prices. Same for its taxes on pharmaceuticals and medical devices. The law also requires that all plans cover a broad range of “essential” benefits, some of which they may not already. The law requires that employers cover “adult children” under the age of 26, which is a good deal for those with adult children, but an added cost for everyone else.

    These were among the factors that led Delta Air Lines to estimate that it will spend $100 million more on health coverage in 2014 than it did in 2013. And Delta is a large employer, not a small employer; large employers should face relatively lower rate hikes than small ones.

    Then, there’s the likelihood that some of the small employers facing steep premium hikes under the law will drop coverage altogether, and rely on Obamacare-subsidized exchanges instead. That form of adverse selection will increase the average cost of small-group health insurance. The companies most likely to do this? Those with a disproportionate number of younger and healthier employees.

    http://www.forbes.com/sites/theapoth...red-insurance/
    People who wonder if the glass is half empty or full miss the point. The glass is refillable.

  2. #2
    Tony Fracasso - Admin
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    Yesterday, the Obama Administration’s Centers for Medicare and Medicaid Services released a six-page report predicting that Obamacare could cause premiums to increase for nearly two-thirds of small- to medium-sized businesses. “This results in roughly 11 million individuals whose premiums are estimated to be higher as a result of the ACA and about 6 million individuals who are estimated to have lower premiums,” CMS writes. But CMS’ projections almost certainly understate the problem, one that will begin to affect millions of workers in the second half of 2014.
    Our premiums are higher since ObamaCare when into law, our deductibles are higher and our plan was cancelled that we originally had.

  3. #3
    Member FMD's Avatar
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    And I'm still uninsured. Lol
    Willful ignorance is the downfall of every major empire in history.

    "Political power grows out of the barrel of a gun." - Mao, 1938

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