Another Obama Claim Debunked

So when will we see those rate reductions that we were promised?
*******************************************************

Is ObamaCare Causing Health Insurance Premiums to Rise?
Peter Suderman|Jan. 8, 2013 9:30 am

Perhaps there's another explanation? For example: Might ObamaCare’s new rules and regulations being playing some role in the increases? There’s good reason to think the law itself is at least partially responsible.

It's seems likely, for example, that ObamaCare’s new coverage mandates have contributed to some of the increase in the individual market: Consulting firm Aon Hewitt estimates that those premiums have gone up about 5 percent as a result of the law.

That explains some of the increase. But not all of it. Which is why those looking for another culprit should consider the possibility that a provision intended to help consumers get better value for their money is actually costing them higher premiums.

That provision, often referred to as the 80/20 rule, sets mandatory medical loss ratios (MLRs) for health insurers. The MLR is an accounting requirement which says that insurers have to spend at least 80 percent of their total premium revenue on medical expenses, leaving just 20 percent for administrative costs, marketing, and other non-medical expenditures. Any insurer that fails to meet this target must issue rebates to customers. This year, insurers rebated about $1 billion.

The MLR provision creates two incentives for insurers to jack up health insurance premiums. One is the plain fact that with profit and administrative costs capped as a percentage of premium revenue, the easiest way to generate larger profits is to charge higher premiums.

The other is that the rebate requirement means insurers may need to charge higher up-front premiums in order to protect themselves from the risk of a bad year. As Scott Harrington, a professor in the University of Pennsylvania's Department of Health Management, explained in a November 2012 paper, that’s because health insurance claims — and thus MLRs — fluctuate significantly between years. Harrington's paper, which got funding from a health insurance trade group, argues that the annual variation, and the resulting uncertainty, creates a problem for insurers: If claims are low in a given year, they end up rebating the difference to the customer because of the MLR rule. If claims are unexpectedly high, however, they end up eating the difference. Insurers thus have a incentive to protect themselves by charging high premiums at the outset, and then paying those premiums back in rebates should claims come in at low or expected levels.

Is the MLR rule causing the higher premium requests? It's hard to say with certainty, but it fits the bill in many ways: Harrington's analysis suggests that the high up front premiums should be concentrated in the small-group and individual markets, which is exactly what the Times reports. No matter what, it's clear that ObamaCare isn't resulting in lower premiums. And for many people, in the years after the law, premiums aren't just going to up up a little. They're going to rise a lot.

Is ObamaCare Causing Health Insurance Premiums to Rise? - Hit & Run : Reason.com
 
I guarantee Obamacare is going to be a clusterfuck. We get less care for more money.

Those who pay the most taxes get the least entitlements.

It will be the same with healthcare.

The middle class will pay the most and get the least.
 
So when will we see those rate reductions that we were promised?
*******************************************************

Is ObamaCare Causing Health Insurance Premiums to Rise?
Peter Suderman|Jan. 8, 2013 9:30 am

Perhaps there's another explanation? For example: Might ObamaCare’s new rules and regulations being playing some role in the increases? There’s good reason to think the law itself is at least partially responsible.

It's seems likely, for example, that ObamaCare’s new coverage mandates have contributed to some of the increase in the individual market: Consulting firm Aon Hewitt estimates that those premiums have gone up about 5 percent as a result of the law.

That explains some of the increase. But not all of it. Which is why those looking for another culprit should consider the possibility that a provision intended to help consumers get better value for their money is actually costing them higher premiums.

That provision, often referred to as the 80/20 rule, sets mandatory medical loss ratios (MLRs) for health insurers. The MLR is an accounting requirement which says that insurers have to spend at least 80 percent of their total premium revenue on medical expenses, leaving just 20 percent for administrative costs, marketing, and other non-medical expenditures. Any insurer that fails to meet this target must issue rebates to customers. This year, insurers rebated about $1 billion.

The MLR provision creates two incentives for insurers to jack up health insurance premiums. One is the plain fact that with profit and administrative costs capped as a percentage of premium revenue, the easiest way to generate larger profits is to charge higher premiums.

The other is that the rebate requirement means insurers may need to charge higher up-front premiums in order to protect themselves from the risk of a bad year. As Scott Harrington, a professor in the University of Pennsylvania's Department of Health Management, explained in a November 2012 paper, that’s because health insurance claims — and thus MLRs — fluctuate significantly between years. Harrington's paper, which got funding from a health insurance trade group, argues that the annual variation, and the resulting uncertainty, creates a problem for insurers: If claims are low in a given year, they end up rebating the difference to the customer because of the MLR rule. If claims are unexpectedly high, however, they end up eating the difference. Insurers thus have a incentive to protect themselves by charging high premiums at the outset, and then paying those premiums back in rebates should claims come in at low or expected levels.

Is the MLR rule causing the higher premium requests? It's hard to say with certainty, but it fits the bill in many ways: Harrington's analysis suggests that the high up front premiums should be concentrated in the small-group and individual markets, which is exactly what the Times reports. No matter what, it's clear that ObamaCare isn't resulting in lower premiums. And for many people, in the years after the law, premiums aren't just going to up up a little. They're going to rise a lot.

Is ObamaCare Causing Health Insurance Premiums to Rise? - Hit & Run : Reason.com

you seriously are fucking retarded. The NYtimes article doesn't state what you are claiming, so you go find a basically amounts to an opinion piece on whats going on.

This questions in the article have already been answered in the first one you gave. The article you just quoted is ignoring or not giving out where they get these stats from.

If Insurers have a bad year,its because of their own problems of capping the pool at a certain number of members.

This is the problem with people like you. Don't like the results? go find a new source that supports your opinion.

You are the worst type of person in politics.
 
I guarantee Obamacare is going to be a clusterfuck. We get less care for more money.

Those who pay the most taxes get the least entitlements.

It will be the same with healthcare.

The middle class will pay the most and get the least.

awesome! Do you have tonights lotto numbers by chance as well?
 
OK Plasma, here is the article as quoted by freemason9.

Pay attention to the highlighting.

Although rates paid by employers are more closely tracked than rates for individuals and small businesses, policy experts say the law has probably kept at least some rates lower than they otherwise would have been.
“There’s no question that review of rates makes a difference, that it results in lower rates paid by consumers and small businesses,” said Larry Levitt, an executive at the Kaiser Family Foundation, which estimated in an October report that rate review was responsible for lowering premiums for one out of every five filings.

Federal officials say the law has resulted in significant savings. “The health care law includes new tools to hold insurers accountable for premium hikes and give rebates to consumers,” said Brian Cook, a spokesman for Medicare, which is helping to oversee the insurance reforms.

“Insurers have already paid $1.1 billion in rebates, and rate review programs have helped save consumers an additional $1 billion in lower premiums,” he said. If insurers collect premiums and do not spend at least 80 cents out of every dollar on care for their customers, the law requires them to refund the excess.

As a result of the review process, federal officials say, rates were reduced, on average, by nearly three percentage points, according to a report issued last September.

The subject is rate review.

Rate review has kept 'some rates' lower than they would have been.

Rate review has lowered rates for 1 in 5.

Rate review has lowered rates for that 1 in 5 by nearly 3%.

IOW, rates have INCREASED for EVERYONE, but rate review has lessened that increase by nearly 3% for 20% of policies.

thats fine but we havent seen what the rates will do when the pools are opened back up.
 
You are once again, missing the point. My point is that Obama should not have made the claim that ObamaCare would reduce rates by $2500.00 per family unless he was certain that it would. Why is this so difficult for you to understand?

no i got your point, and i am ignoring it because i wanted you to answer my questions and not punt off onto this subject.

So feel free to answer my questions.

How is Obama responsible for that one insurance raising rates by 39% in 2010 and now are looking to raise it another 20% just because they can?
Are you trying to claim that in 2010 there excuse was Obamacare? Which i don't think had even passed yet nor taken affect.

Sorry but I don't care to be pulled off topic. Obama claimed that his program would reduce insurance rates by $2500.00 per year, per family. He apparently had no plan or method to make that happen and yet was not challenged on the claim. He lied to get elected and lied to sell his program. People like you accepted that lie and now you want to make excuses for why it's too hard for Obama to keep his word.

holy shit this is on topic! Its in your FUCKING OP link you moronic twat.
 
Vel didn't read her own source,you basically took the title and ran with it as an attack on obamacare without reading.
The times are mainly talking about one company that already raised premiums 39% in 2010 and is seeking more because california does not have a review process on letting companies raise rates. It would seem this one company has a poor structure system if they need to raise rates by 59% in two years.
furthermore the article is advocating for a regulation in allowing a review process on rates.it also states rates have decreased as well and may only rise on some by 7.5, but has also dropped percentage points as well.

If you are going to quote an article, make sure you understand what it says and not waste peoples time you fucking hack.

It does seem odd that all the rw's premiums have gone up while lib's have not.

I wonder why that is ......................................
 
Oh, and why are only the lib's insurance companies paying out the mandatory refunds?

LOL
 
Misty-
I guarantee Obamacare is going to be a clusterfuck. We get less care for more money.
Those who pay the most taxes get the least entitlements.

It will be the same with healthcare.

The middle class will pay the most and get the least.

Proof of your "guarantee"?

LOL



.
 
OP: Pure Pubcrappe. The rise in costs was the lowest in decades the past year, and it hasn't really STARTED yet, dupes of greedy rich morons and Big Health...
 
Last edited:
So when will we see those rate reductions that we were promised?
*******************************************************

Is ObamaCare Causing Health Insurance Premiums to Rise?
Peter Suderman|Jan. 8, 2013 9:30 am

Perhaps there's another explanation? For example: Might ObamaCare’s new rules and regulations being playing some role in the increases? There’s good reason to think the law itself is at least partially responsible.

It's seems likely, for example, that ObamaCare’s new coverage mandates have contributed to some of the increase in the individual market: Consulting firm Aon Hewitt estimates that those premiums have gone up about 5 percent as a result of the law.

That explains some of the increase. But not all of it. Which is why those looking for another culprit should consider the possibility that a provision intended to help consumers get better value for their money is actually costing them higher premiums.

That provision, often referred to as the 80/20 rule, sets mandatory medical loss ratios (MLRs) for health insurers. The MLR is an accounting requirement which says that insurers have to spend at least 80 percent of their total premium revenue on medical expenses, leaving just 20 percent for administrative costs, marketing, and other non-medical expenditures. Any insurer that fails to meet this target must issue rebates to customers. This year, insurers rebated about $1 billion.

The MLR provision creates two incentives for insurers to jack up health insurance premiums. One is the plain fact that with profit and administrative costs capped as a percentage of premium revenue, the easiest way to generate larger profits is to charge higher premiums.

The other is that the rebate requirement means insurers may need to charge higher up-front premiums in order to protect themselves from the risk of a bad year. As Scott Harrington, a professor in the University of Pennsylvania's Department of Health Management, explained in a November 2012 paper, that’s because health insurance claims — and thus MLRs — fluctuate significantly between years. Harrington's paper, which got funding from a health insurance trade group, argues that the annual variation, and the resulting uncertainty, creates a problem for insurers: If claims are low in a given year, they end up rebating the difference to the customer because of the MLR rule. If claims are unexpectedly high, however, they end up eating the difference. Insurers thus have a incentive to protect themselves by charging high premiums at the outset, and then paying those premiums back in rebates should claims come in at low or expected levels.

Is the MLR rule causing the higher premium requests? It's hard to say with certainty, but it fits the bill in many ways: Harrington's analysis suggests that the high up front premiums should be concentrated in the small-group and individual markets, which is exactly what the Times reports. No matter what, it's clear that ObamaCare isn't resulting in lower premiums. And for many people, in the years after the law, premiums aren't just going to up up a little. They're going to rise a lot.

Is ObamaCare Causing Health Insurance Premiums to Rise? - Hit & Run : Reason.com

you seriously are fucking retarded. The NYtimes article doesn't state what you are claiming, so you go find a basically amounts to an opinion piece on whats going on.

This questions in the article have already been answered in the first one you gave. The article you just quoted is ignoring or not giving out where they get these stats from.

If Insurers have a bad year,its because of their own problems of capping the pool at a certain number of members.

This is the problem with people like you. Don't like the results? go find a new source that supports your opinion.

You are the worst type of person in politics.

LOL I'd only be seriously fucking retarded if I were one of those that believed that Obamacare was actually going to lower insurance premium rates as Obama promised. If you don't like my sources, you're more than welcome to go find those sources that show people receiving that $2500.00 decrease in premium rates we were promised. I'm sure others besides myself would be more than interested in finding our how we can get our reductions.

And yes.. to you I would be the worst type of person in politics because I am happy to point out that Obama has lied to you. Feel free to hate the messenger, but it doesn't change the message. Obama lied.
 
If only the rw's would actually READ the ACA.

But, then they wouldn't be able to tell these huge fictions about it.
 
If only the rw's would actually READ the ACA.

But, then they wouldn't be able to tell these huge fictions about it.

If only the dipshits in Congress had read it. Maybe then we wouldn't be stuck with the goddamned thing.
 
  • Thanks
Reactions: Vel
So when will we see those rate reductions that we were promised?
*******************************************************

Is ObamaCare Causing Health Insurance Premiums to Rise?
Peter Suderman|Jan. 8, 2013 9:30 am

Perhaps there's another explanation? For example: Might ObamaCare’s new rules and regulations being playing some role in the increases? There’s good reason to think the law itself is at least partially responsible.

It's seems likely, for example, that ObamaCare’s new coverage mandates have contributed to some of the increase in the individual market: Consulting firm Aon Hewitt estimates that those premiums have gone up about 5 percent as a result of the law.

That explains some of the increase. But not all of it. Which is why those looking for another culprit should consider the possibility that a provision intended to help consumers get better value for their money is actually costing them higher premiums.

That provision, often referred to as the 80/20 rule, sets mandatory medical loss ratios (MLRs) for health insurers. The MLR is an accounting requirement which says that insurers have to spend at least 80 percent of their total premium revenue on medical expenses, leaving just 20 percent for administrative costs, marketing, and other non-medical expenditures. Any insurer that fails to meet this target must issue rebates to customers. This year, insurers rebated about $1 billion.

The MLR provision creates two incentives for insurers to jack up health insurance premiums. One is the plain fact that with profit and administrative costs capped as a percentage of premium revenue, the easiest way to generate larger profits is to charge higher premiums.

The other is that the rebate requirement means insurers may need to charge higher up-front premiums in order to protect themselves from the risk of a bad year. As Scott Harrington, a professor in the University of Pennsylvania's Department of Health Management, explained in a November 2012 paper, that’s because health insurance claims — and thus MLRs — fluctuate significantly between years. Harrington's paper, which got funding from a health insurance trade group, argues that the annual variation, and the resulting uncertainty, creates a problem for insurers: If claims are low in a given year, they end up rebating the difference to the customer because of the MLR rule. If claims are unexpectedly high, however, they end up eating the difference. Insurers thus have a incentive to protect themselves by charging high premiums at the outset, and then paying those premiums back in rebates should claims come in at low or expected levels.

Is the MLR rule causing the higher premium requests? It's hard to say with certainty, but it fits the bill in many ways: Harrington's analysis suggests that the high up front premiums should be concentrated in the small-group and individual markets, which is exactly what the Times reports. No matter what, it's clear that ObamaCare isn't resulting in lower premiums. And for many people, in the years after the law, premiums aren't just going to up up a little. They're going to rise a lot.

Is ObamaCare Causing Health Insurance Premiums to Rise? - Hit & Run : Reason.com

you seriously are fucking retarded. The NYtimes article doesn't state what you are claiming, so you go find a basically amounts to an opinion piece on whats going on.

This questions in the article have already been answered in the first one you gave. The article you just quoted is ignoring or not giving out where they get these stats from.

If Insurers have a bad year,its because of their own problems of capping the pool at a certain number of members.

This is the problem with people like you. Don't like the results? go find a new source that supports your opinion.

You are the worst type of person in politics.

LOL I'd only be seriously fucking retarded if I were one of those that believed that Obamacare was actually going to lower insurance premium rates as Obama promised. If you don't like my sources, you're more than welcome to go find those sources that show people receiving that $2500.00 decrease in premium rates we were promised. I'm sure others besides myself would be more than interested in finding our how we can get our reductions.

And yes.. to you I would be the worst type of person in politics because I am happy to point out that Obama has lied to you. Feel free to hate the messenger, but it doesn't change the message. Obama lied.

enjoy the bubble you live in twat.
 
Healthcare insurance rates are going up for some people, some people are losing their healthare insurance, some people will lose their jobs and over $2T worth of obamacare debt will be added to the national debt so far.

Yet stupid fuck liberals come here touting this bullshit because they are either evil or knuckle draggers.
 
you seriously are fucking retarded. The NYtimes article doesn't state what you are claiming, so you go find a basically amounts to an opinion piece on whats going on.

This questions in the article have already been answered in the first one you gave. The article you just quoted is ignoring or not giving out where they get these stats from.

If Insurers have a bad year,its because of their own problems of capping the pool at a certain number of members.

This is the problem with people like you. Don't like the results? go find a new source that supports your opinion.

You are the worst type of person in politics.

LOL I'd only be seriously fucking retarded if I were one of those that believed that Obamacare was actually going to lower insurance premium rates as Obama promised. If you don't like my sources, you're more than welcome to go find those sources that show people receiving that $2500.00 decrease in premium rates we were promised. I'm sure others besides myself would be more than interested in finding our how we can get our reductions.

And yes.. to you I would be the worst type of person in politics because I am happy to point out that Obama has lied to you. Feel free to hate the messenger, but it doesn't change the message. Obama lied.

enjoy the bubble you live in twat.

LOLOL Reduced to name calling due to lack of ability to prove that Obama isn't a liar. How very third grade you've become. :D
 

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