2015 Health Insurance Renewals Blowing Up Before the Election

[somarco]

I am getting nasty calls about plans being cancelled and 2015 renewal offers running from 40% to over 200%. Plans written BEFORE 1/1/14 are being transitioned to Obamacare plan design.

One family is going from $450 to $1200/mo. A couple will have their premiums increase from $400 to $600 per month. Another family has rates jumping from $600 to $1400.

Everyone of them has said they cannot afford it and even if they could they refuse to pay it.

Everyone of them know the cause is Obamacare.

What have you seen?

 

[FLM2]

I am getting nasty calls about plans being cancelled and 2015 renewal offers running from 40% to over 200%. Plans written BEFORE 1/1/14 are being transitioned to Obamacare plan design.

One family is going from $450 to $1200/mo. A couple will have their premiums increase from $400 to $600 per month. Another family has rates jumping from $600 to $1400.

Everyone of them has said they cannot afford it and even if they could they refuse to pay it.

Everyone of them know the cause is Obamacare.

What have you seen?

Same thing although I had emailed all of my clients who were facing plan termination ahead of time so they weren't surprised and knew I was on their side.

The only way to offset some of these increases is writing Exchange policies-I only did about 5% On Exchange last year, it will be more like 25-30% this year.

The White House made a huge mistake moving the OEP back this year because of these renewal notices with no alternatives available until after the election-they would have been far better off if they just kept OEP beginning on October 1st.

 

[bluediamond]

The White House had made a lot of mistakes.

Yes, I had a lady call this week (not my client) has had her policy for about 12 years, no changes she said, she received an email saying her policy was cancelling July 1, 2015. I found this kind of strange she was receiving this now, so told her to call BC and find out what plan she is actually on. She called back and sure enough a long time grandfathered plan. I explained this may have been a mistake but if not, would receive a cancellation and migration notice 90 days in advance and call back, she did not to change plans now.

Letter's have been sent semi explaining the re enrollment and to call FB or call an agent to run you through the subsidy app again. I see this slowly building up to be a mess.

 

[somarco]

Grandmothered and grandfathered plans alike are being cancelled in GA as of 12/31. Carriers are required to give 60 day notice but some are letting the cat out of the bag earlier.

 

[Yagents]

Low income get subsidies, high income can afford these outlandish prices to protect assets............it's the middle class who gets screwed and will go uninsured.

 

[somarco]

There is no more middle class. The last 6 years have all but eliminated them and the jobs that went with it.

 

[Yagents]

Ok........Then..........both of them will be upset

 

[KennyWest]

this is what the dems wanted, take care of low information voters, spread the wealth, extract revenge on higher income earners as they see them as having made their $ at the demise of low income earners.

 

[FLM2]

this is what the dems wanted, take care of low information voters, spread the wealth, extract revenge on higher income earners as they see them as having made their $ at the demise of low income earners.

Contrary to some, there is a large middle class in this country (at least as it related to ACA) and they are truly the ones being screwed and screwed big time.

They are the ones who are double income families, who earn as little as $1 more than 400% of the FPL and will see their premiums double (or more) in January because they don't qualify for a subsidy.

All it takes for a family of 4 with two working parents making $47,100.50 per year each (far from high income) to kick out a substantial subsidy that is about 25% of their new health insurance premium.

I added the 50 cents at the end of the income for a specific reason-if a family of 4 makes $94,200 there is a subsidy that could be as much as $4,000 a year (people in their late 50's with kids) and if they make $1 more there is zero subsidy.

I've known this for a few years (since Kaiser introduced the calculator) and showed the difference to a few clients this week who are near the 400% FPL threshold-they were both dumbfounded and irritated as should everyone else at the stupidity of the structure of this law.

 

[Ann H]

Yes, Somarco, I am having the same rash of phone calls from irate people whose plans were cancelled and/or they were offered new plans at much higher rates.

I agree that the Obama administration made a mistake to let this happen at election time, especially without letting people see the new plans until 11/15/2014.