AZ Rates for 2017 Explode

[Yagents]

Kaboom. Attached the PDF of rate increases for next year.
Good news? APTC is going up by 29% in AZ
Ran rates for 50 yr old in Maricopa county to compare


65% BCBS AZ (will be highest cost in 2017)(they dont' want the biz)

60% Phx health plans (lowest cost in 2016 / will be #4 in 17')

29% Health Choice (SLCSP in 2016 and again 2017)
Lowest cost in 2017 also
(Did not pay commissions in 2016)

29% Health Net (#5 in 2017)

18% Aetna (will be #3 in 17 and tied with health net)

9% Cigna (will be #2 in 2017) (Doc in a box network like Kaiser)

https://insurance.az.gov/consumers/...rmation-about-health-insurance-rate-increases

 

[AZDave]

Thanks for the great news, Bill! As an off exchange insurance buyer, I don't know if I should write someone, throw something or go buy some more Vaseline for the premium pounding. Thinking all of the above.

I'm a minority for sure. Off exchange insured, who use to opt for a high deductible plan to save $ and is now stuck with a choice of what? Squat!

Did someone say 93% have group health, and are not going to see this type of increase? Then that leaves the 7% on the individual market, most who qualify for reduced premiums, or no premiums, right?

So now more will become uninsured; they won't pay higher premiums.

If someone is uninsured, and becomes ill and they wait to treat until open enrollment, they are then covered?

And just so I understand this better: this is all because the health costs that use to be paid by the government to the providers pre ocare, are now paid by the health insurers, and health insurers are just not collecting enough premium? So either the government needs to pay more, or the insureds need to pay more, or the insurance company's will just say' efit.?

 

[Yagents]

Thanks for the great news, Bill! As an off exchange insurance buyer, I don't know if I should write someone, throw something or go buy some more Vaseline for the premium pounding. Thinking all of the above.

I'm a minority for sure. Off exchange insured, who use to opt for a high deductible plan to save $ and is now stuck with a choice of what? Squat!

Did someone say 93% have group health, and are not going to see this type of increase? Then that leaves the 7% on the individual market, most who qualify for reduced premiums, or no premiums, right?

So now more will become uninsured; they won't pay higher premiums.

If someone is uninsured, and becomes ill and they wait to treat until open enrollment, they are then covered?

And just so I understand this better: this is all because the health costs that use to be paid by the government to the providers pre ocare, are now paid by the health insurers, and health insurers are just not collecting enough premium? So either the government needs to pay more, or the insureds need to pay more, or the insurance company's will just say' efit.?

Vaseline is the right answer.
Rate increases are due to losses, and represent a breakeven level (or 3% profit level)
No more buying quality, buying cheapest with tiny network and no HSA is going to be the theme next year in AZ.
Off exchange market will blow up first.
More uninsured across the board.
Subsidized will still need to buy crap to keep their premium near same level.
Probably no commissions for the crap companies.
Nobody will be able to keep their doctors.
Yes, you can go uninsured and pay 2.5% penalty.
If so, you can buy in Open enrollment and be covered for pre-existing conditions.
Gov't won't come to rescue with any more money.

Time to vote for Bernie.

Are you hiring?

 

[somarco]

I will be very surprised if any of them break even in 2017. I expect the lossess to continue at least another 2 - 3 years, depending on how many players stay in the game.

Of course there is the possibility they will all go home, or transition to the Medicaid side.

 

[Ann H]

I will be very surprised if any of them break even in 2017. I expect the lossess to continue at least another 2 - 3 years, depending on how many players stay in the game.

Of course there is the possibility they will all go home, or transition to the Medicaid side.

In AZ, Aetna will be the winner of the biggest loser contest. They are currently priced slightly above BCBSAZ, with a similar network. But now, Aetna's 18% rate increase, vs 65% for BCBSAZ, means that the population will move to Aetna's side of the boat. So Aetna's mildly profitable year will come to a shocking cliff. Furthermore, Aetna will look kinda good to the subsidy crowd. That is because in 2016 & 2017, Health Choice had the SLCSP (on a Medicaid-like platform). But Health Choice is going up 29% and Aetna 18%, so Aetna will have more lipstick on the pig.

If Aetna realizes this problem in the next few months, they can revise their rate increase or withdraw from the market. And if they do, the other carriers will follow suit, because they already have memories of prior years where they were the pig with the most lipstick.

 

[somarco]

Can Aetna, or any other carrier, skinny their network once the "oh crap" light bulb comes on but before the season starts? Or are they stuck with the cards they dealt themselves?

 

[Yagents]

They already had skinny networks in Arizona and Florida. But, they have network adequacy standards they must meet and only getter tougher to meet, not easier. They are the only major carrier that broke even or lost a little last year. They will not jeopardize merger for such a small segment of their revenues. They will not pull their plans at last minute. Others will when large increases are not approved.

 

[AZDave]

Are you hiring? [/QUOTE]

Yes, but you probably expect health care benefits!

Such bs. I am the one that will have to be looking for job soon just to get access to health care.

Absolutely no incentive for someone to start their own business, only extra costs.
Pretty sad state of affairs we live in. Seems the ideal job to most people, if they even desire to get a job, is to be a full time government employee.

 

[tonyisme]

No wonder all the gun shops are busy and full of people