Anything on Iowa Rates?

[anonymous1]

Same here 20 character. Don't worry about the mules going blind just load the wagon

 

[timsip]

Back to the topic of Iowa Rates....According to Iowa's insurance commissioner, Iowans will be seeing some of the lowest rates in the country when it comes to on exchange health insurance premiums. That is a good thing, right? Well, maybe. Let's take an individual with an income of $34,470. This is 300% of the Federal Poverty Level (2013 numbers). At this level, the maximum the individual will be responsible for is 9.5% of their income or $272.89 per month. With the information released earlier this week, a 40 year old buying a silver plan will be looking at a premium of about $219 per month. Since this number is lower than 9.5% of his income, he would still be paying 100% of the premium. Anyone younger than this will also be paying 100% of the premium. Even though the income level qualifies this individual for subsidies, he won't receive any subsidies because the premium for the silver plan (assuming that is the second lowest on the market) is below his maximum contribution. There will be many who expect to receive subsidies that won't. It's a good thing that our premiums are lower than most other states, but it doesn't help cash strapped families who can't afford $200+ per month premiums.

 

[AllenChicago]

TimSip, thanks for that excellent example of why millions of young people will see no help from the Federal Government as their premiums skyrocket by 100% or more. I have several younger clients here in Illinois that will see +100% premium increases combined with a deductible/out-of-pocket increase of 400%. It's deplorable, to say the least.
ac

 

[AllenChicago]

Iowa 2014 Premium Rates Released by the State Today. (9/20/2013)

Link To Story: Insurance rates relased for Iowa health care exchange

ac

 

[timsip]

Iowa 2014 Premium Rates Released by the State Today. (9/20/2013)

Link To Story: Insurance rates relased for Iowa health care exchange

ac

Dammit AC! Ten minutes! I wanted to break this! You are fast!

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More rates have been released for health insurance effective in 2014 due to Health Care Reform, aka Obamacare. According to the new release, there are two carriers offering exchange plans in Central Iowa (Polk, Warren, Dallas, Marion, Madison and Jasper). Here are the averages for three different age bands for each carrier:

CoOpportunity Health:

Age: 21 Average 190.76
Age: 45 Average 275.46
Age: 62 Average 548.05

Coventry:

Age: 21 Average 172.96
Age: 45 Average 249.76
Age: 62 Average 496.92

I will be conducting a complete analysis and posting an article on my website this weekend that should give you an idea of subsidy eligibility based on age as well as compare these plans so we can start determining the advantages and disadvantages of each plan. Stay Tuned!

 

[anonymous1]

Ick. Should be interesting

 

[timsip]

anonymous, do you have the rates for your neck of the woods? I am finding that if you are outside of Central Iowa or rating area 2, the rates are much higher. One problem I might face is people that expect subsidies won't get them because the benchmark plan premium may be below their maximum responsibility. The rating areas with higher premiums may not see this problem.

 

[anonymous1]

I went to Iowa dept of insurance. Not cool

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Good thing there are subsidies

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http://www.iid.state.ia.us/sites/de...e/2013/09/19/sample_comparisons_pdf_19208.pdf

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A 45 year old is going to have about $100 monthly increase Comparing Coventry to Coventry

 

[timsip]

This is based on Rating Area 2 (Central Iowa), but an excerpt from an article I posted tonight on my website:

With these pieces of information in mind, we can now determine what everyone will be paying and how much subsidy you can expect if any at all. Knowing that the benchmark plan for a 45 year old is priced at $248.22, we now determine the highest income that will allow for a subsidy. With the sliding scale, we can determine that at $32,750, an individual is at about 285% of FPL. At this level, the maximum percentage of income an individual is responsible for is 9.07% or $247.42. Any income above this will not receive a subsidy for this age. Below this income level, subsidies will be available.

Link

I believe we will have great networks, however the number of people receiving subsidies will be much lower than what many may think. As you get further from the central part of the state, I think this trend will switch. I am in a bit of a debate with someone on a Des Moines Register article about this very topic.

 

[Nikita]

CoOportunity's commission structure is much better than Coventry, but if Coventry's rates are lower, how can an insurance agent justify enrolling someone in CoOp rather than Coventry? Damn...I was really hoping CoOp's rates would be better than Coventrys.....