My Health Insurance Premiums Went Through the Roof - WTF

[GHook93]

I work for a large global company. Last year I elected to go with the PPO with an HRA. That means you exhaust the HRA and then you have to pay the high deductible ($1500 per person or $3K per family), because my PPO+ went up $4K. BIG MISTAKE. It cost me a ton. Keep in mind I have 3 kids!

I finally got to open enrollment and was ready to go back the PPO+, but I was SHOCKED to see the premiums jump up $1,800 to $5,880!!! That is a huge increase. With the deductibles going up and the co-pay down to 85% instead of 90%! Now the PPO with the HRA jumped up to $4K with only $1,200 HRA! It's not because of head count. We had huge layoffs in 2008, 2009 and my co increased head count in 2010 and early 2011.

The only explanation I can come up with is Obaminationcare drove up the costs. I am seriously considering a HMO, a plan I had had since 2002 when I was single! This is change, but definitely not hope!

 

[Mr. H.]

Does your employer contribute to the premiums? Can you opt out of their coverage?
If so, shop around.

 

[Listening]

I work for a large global company. Last year I elected to go with the PPO with an HRA. That means you exhaust the HRA and then you have to pay the high deductible ($1500 per person or $3K per family), because my PPO+ went up $4K. BIG MISTAKE. It cost me a ton. Keep in mind I have 3 kids!

I finally got to open enrollment and was ready to go back the PPO+, but I was SHOCKED to see the premiums jump up $1,800 to $5,880!!! That is a huge increase. With the deductibles going up and the co-pay down to 85% instead of 90%! Now the PPO with the HRA jumped up to $4K with only $1,200 HRA! It's not because of head count. We had huge layoffs in 2008, 2009 and my co increased head count in 2010 and early 2011.

The only explanation I can come up with is Obaminationcare drove up the costs. I am seriously considering a HMO, a plan I had had since 2002 when I was single! This is change, but definitely not hope!

I am sorry to hear that.

Yes, I am afraid that "Obamacare" is really a precurser to cholonoscopy.

 

[Political Junky]

Surprise, the private healthcare industry is price gouging as they always do.

 

[midcan5]

I work for a large global company. Last year I elected to go with the PPO with an HRA. That means you exhaust the HRA and then you have to pay the high deductible ($1500 per person or $3K per family), because my PPO+ went up $4K. BIG MISTAKE. It cost me a ton. Keep in mind I have 3 kids!...

What's wrong with that? I thought you guys loved the free market? Stop whining, you made your personal and healthcare choices, you got what the market provides. Corporate America still loves you and especially your money. Stay healthy my friend, stay healthy.

Mirror, Mirror on the Wall: How the Performance of the U.S. Health Care System Compares Internationally, 2010 Update - The Commonwealth Fund
.

 

[zzzz]

If you look around you will see most health insurance is increasing next year. Unusual? No, the cost of medical care keeps rising faster than other costs and income. The insurance companies need to raise rates to keep their profits. After all, the health industry is not in business for your health they are in it to make a profit. From the hospitals, doctors, medical supply companies and shareholders everybody wants a profit.

 

[editec]

Ah! the joys of free market health care insurance.

Get used to it.

That's just an example of your provider charging whatever the market can bear.

They are in business to make money, you know.

You HC coverage is merely a happy-by product of their money making business.

 

[chanel]

From the NY Times:

How much the new federal health care law pushed by President Obama is affecting insurance rates remains a point of debate, with some analysts suggesting that insurers have raised prices in anticipation of new rules that would, in 2012, require them to justify any increase of more than 10 percent.

In addition to increases caused by insurers getting ahead of potential costs, some of the law’s provisions that are already in effect -- like coverage for adult children up to 26 years of age and prevention services like mammogram screening -- have contributed to higher expenses for some employers.

http://www.nytimes.com/2011/09/28/b...ply-this-year-study-shows.html?pagewanted=all

I expect this trend to continue until the law kicks in. But I also suspect doctors will be raising their rates to offset the lower medicaid reimbursements. How the insurance companies will be able to handle that is yet to be seen. Maybe they'll just go belly up. Perhaps that was the plan all along.

 

[Douger]

#1 !!!!!!!!!!

A bit off topic but I know a couple murkins that wanted to escape to New Zealand. The wife had a (now) common murkin physique,Great Pumpkin with wig.
They turned them down because of the (correct) assumption that she would wind up being a liability to the health care system.

 

[editec]

From the NY Times:

How much the new federal health care law pushed by President Obama is affecting insurance rates remains a point of debate, with some analysts suggesting that insurers have raised prices in anticipation of new rules that would, in 2012, require them to justify any increase of more than 10 percent.

In addition to increases caused by insurers getting ahead of potential costs, some of the law’s provisions that are already in effect -- like coverage for adult children up to 26 years of age and prevention services like mammogram screening -- have contributed to higher expenses for some employers.

http://www.nytimes.com/2011/09/28/b...ply-this-year-study-shows.html?pagewanted=all

I expect this trend to continue until the law kicks in. But I also suspect doctors will be raising their rates to offset the lower medicaid reimbursements. How the insurance companies will be able to handle that is yet to be seen. Maybe they'll just go belly up. Perhaps that was the plan all along.

Chanel,

What do you see in the proposed HC law that will drive down the cost of HC?

Seriously, if I've missed something please explain it to me.

All I seee this bill doing is increasing demand, without in any way addressing costs or supply.

What have I missed?

 

[uscitizen]

#1 !!!!!!!!!!

A bit off topic but I know a couple murkins that wanted to escape to New Zealand. The wife had a (now) common murkin physique,Great Pumpkin with wig.
They turned them down because of the (correct) assumption that she would wind up being a liability to the health care system.

Yep I checked in on moving to NZ several years ago. they make you prove you will not be a liability to them.
I suppose why no TP members move over there?

 

[uscitizen]

From the NY Times:

How much the new federal health care law pushed by President Obama is affecting insurance rates remains a point of debate, with some analysts suggesting that insurers have raised prices in anticipation of new rules that would, in 2012, require them to justify any increase of more than 10 percent.

In addition to increases caused by insurers getting ahead of potential costs, some of the law’s provisions that are already in effect -- like coverage for adult children up to 26 years of age and prevention services like mammogram screening -- have contributed to higher expenses for some employers.

http://www.nytimes.com/2011/09/28/b...ply-this-year-study-shows.html?pagewanted=all

I expect this trend to continue until the law kicks in. But I also suspect doctors will be raising their rates to offset the lower medicaid reimbursements. How the insurance companies will be able to handle that is yet to be seen. Maybe they'll just go belly up. Perhaps that was the plan all along.

Chanel,

What do you see in the proposed HC law that will drive down the cost of HC?

Seriously, if I've missed something please explain it to me.

All I seee this bill doing is increasing demand, without in any way addressing costs or supply.

What have I missed?

Umm insurance companies will be limited on how much their administrative costs can be and must rebate any excess over the limit.

 

[chanel]

From the NY Times:

How much the new federal health care law pushed by President Obama is affecting insurance rates remains a point of debate, with some analysts suggesting that insurers have raised prices in anticipation of new rules that would, in 2012, require them to justify any increase of more than 10 percent.

In addition to increases caused by insurers getting ahead of potential costs, some of the law’s provisions that are already in effect -- like coverage for adult children up to 26 years of age and prevention services like mammogram screening -- have contributed to higher expenses for some employers.

http://www.nytimes.com/2011/09/28/b...ply-this-year-study-shows.html?pagewanted=all

I expect this trend to continue until the law kicks in. But I also suspect doctors will be raising their rates to offset the lower medicaid reimbursements. How the insurance companies will be able to handle that is yet to be seen. Maybe they'll just go belly up. Perhaps that was the plan all along.

Chanel,

What do you see in the proposed HC law that will drive down the cost of HC?

Seriously, if I've missed something please explain it to me.

All I seee this bill doing is increasing demand, without in any way addressing costs or supply.

What have I missed?

According to the NY Times I just linked:

Insurers seeking to raise premiums next year by more than the 10 percent maximum will have to publicly justify their rate increases, and the new law requires the companies to spend at least 80 cents of every dollar they collect in premiums on medical care. If they end up taking too much in premiums, they will have to refund the money to consumers.

 

[RodISHI]

The banking industry got their shot at it. Insurance gets their's. The major food distrubuters are getting theirs too. The country is run by a few monoliths. Get used to it sounds like you work for one. Greed eats its own.

A History Of U.S. Monopolies

 

[Listening]

If you look around you will see most health insurance is increasing next year. Unusual? No, the cost of medical care keeps rising faster than other costs and income. The insurance companies need to raise rates to keep their profits. After all, the health industry is not in business for your health they are in it to make a profit. From the hospitals, doctors, medical supply companies and shareholders everybody wants a profit.

What are the margins in health care ?

If they took the profit out...how much would they save ?

 

[alan1]

First this,
http://www.digitaljournal.com/article/313276#ixzz1bkR2nJvD
snip,

In an announcement on Friday Walmart shared their plans to cut back on provision of health insurance for part time employees and intends to raise premiums for full-timers.

and this,
Wal-Mart trims some U.S. health coverage | Reuters
snip,

Those who use tobacco products will also pay more, with rates varying by the type of plan someone chooses.


"The current healthcare system is unsustainable for everyone and like other businesses we've had to make choices we wish we didn't have to make," said Wal-Mart spokesman Greg Rossiter. "Our country needs to find a way to reduce the cost of healthcare, particularly in this economy."

My youngest daughter works for a Fortune 500 company (banking). This year, they completely re-vamped the health insurance options they offer their employees. They also dramatically increased the employee's share of that insurance. (Effective 01/01/2012)

I work for a Fortune 500 company also (retail). This year, they also included additional premiums for tobacco users just as WalMart did. They increased premiums for all employees and changed the available options. (Effective 01/01/2012)

What does this mean?

In 2014, the rest of the changes for the "Health Care Bill" (actually health insurance bill) signed into law by Mr Obama, will go into effect.
I am of the opinion that large employers are currently changing their health insurance plans as a preemptive measure. Part of what they are doing is designed to get people to opt out of the insurance plans they offer.
They are putting themselves into a position to charge either higher rates, or potentially drop offering the coverage at all. It is actually cheaper for them to pay the fines than it is to pay for the coverage.
Remember now, companies were not required to do either in the past. They offered insurance coverage as a benefit designed to attract employees. The moment that all companies are required to offer said coverage (or pay a fine), they have no reason to continue to offer said coverage. Their benefit offering in that category is now a moot point.

All it is going to take is for one Fortune 500 company to decide to drop coverage, and many (if not most or all) will do the same. So far, nobody wants to be first. This action will force many people to accept the government option, which is a huge leap towards socialized medicine and more government control over your life and my life. I believe that was the intent behind this law, and it is working exactly as Mr Obama and his democrat congress intended.

 

[editec]

From the NY Times:



http://www.nytimes.com/2011/09/28/b...ply-this-year-study-shows.html?pagewanted=all

I expect this trend to continue until the law kicks in. But I also suspect doctors will be raising their rates to offset the lower medicaid reimbursements. How the insurance companies will be able to handle that is yet to be seen. Maybe they'll just go belly up. Perhaps that was the plan all along.

Chanel,

What do you see in the proposed HC law that will drive down the cost of HC?

Seriously, if I've missed something please explain it to me.

All I seee this bill doing is increasing demand, without in any way addressing costs or supply.

What have I missed?

According to the NY Times I just linked:

Insurers seeking to raise premiums next year by more than the 10 percent maximum will have to publicly justify their rate increases,

They ALREADY have to do that.

and the new law requires the companies to spend at least 80 cents of every dollar they collect in premiums on medical care. If they end up taking too much in premiums, they will have to refund the money to consumers.

Okay, that's a pretty good idea.


Now how will the HC Insurance companies respond to that?

They'll find way to justify administration costs as part of the medical costs.

My guess will be they'll foist off some of the administrive work onto the HC providers shoulders to reach that 80% threshold.

Buy those numbers are not going to offset the enormous increase in DEMAND, I suspect.

Right now insurance companies ADMIN costs are only about 20% of the premiums according to the stats I've read on ththis subject.

About another 5% of prmiums goes to profits.

 

[Greenbeard]

It sounds from the OP like these are probably self-insured plans offered by the "large global company" (maybe GHook can clarify if that's the case). If so, it's not private health insurance company shenanigans, and it isn't anticipation of future rate reviews or state mandates or anticipated future essential benefits requirements (none of which apply to self-insured plans).

It would be what it always is: the risk profile of the insurance pool (if it's a self-insured plan, that's the company's employees), utilization of health services by people on the plan, and prices of your provider network. And I suppose potentially a stealth pay cut from the corporate sponsor.

 

[GHook93]

Does your employer contribute to the premiums? Can you opt out of their coverage?
If so, shop around.

Not an option for a PPO I would dishing out $2K a month!

 

[GHook93]

It sounds from the OP like these are probably self-insured plans offered by the "large global company" (maybe GHook can clarify if that's the case). If so, it's not private health insurance company shenanigans, and it isn't anticipation of future rate reviews or state mandates or anticipated future essential benefits requirements (none of which apply to self-insured plans).

It would be what it always is: the risk profile of the insurance pool (if it's a self-insured plan, that's the company's employees), utilization of health services by people on the plan, and prices of your provider network. And I suppose potentially a stealth pay cut from the corporate sponsor.

It's a corporate plan. The PPOs are United Healthcare. The HMO is Blue Cross.

Obaminationcare is bad, but anyone who thinks status quo is the answer is fooling themselves. The GOP suggested options aren't much better: Across statelines, tort reform and HSA plans will do dick in the end.