Health Care Law already crimping job-based insurances?

[IDrinkaRum]

Leading Manufacturing Co - which will remain anonymous 'cos it's not named in article - has told workers their costs will jump because of the law

Other companies are saying they will either up their employees' costs towards insurance offered through the company or will be dropping insurance coverage completely.

[Imprl59]

My own insurance just went up 40% and the accompanying letter from the insurance company said the increase was due to changes mandated by the new health care laws.

Part of me wonders if this is just a ploy by the insurance company and the other part is a little pissed at the government for screwing with the insurance i could barely afford as it was.

[Ipecac Drano]

My own insurance just went up 40% and the accompanying letter from the insurance company said the increase was due to changes mandated by the new health care laws.

Part of me wonders if this is just a ploy by the insurance company and the other part is a little pissed at the government for screwing with the insurance i could barely afford as it was.

It's the insurance company. The government isn't going to change rates or any of that once the healthcare system is overturned; they're just going to give you the option to bypass insurance companies.

[radiocerk]

Agreeing that it's the insurance companies. So far there have been just enough changes that insurance companies can whine and claim rising costs, but the changes that would increase competition haven't taken effect yet. So, they're soaking us for all they can, while they still can.

[Andara Bledin]

It's the insurance companies, almost assuredly.

In the last few decades, they've raised their rates far in excess of any actual increase in their own costs. At one point, merely to cover losses from investments in the stock market.

^-.-^

[Ipecac Drano]

I was at my insurance agent's office the other day, when I had sneezed. My rate went up 30%.

[FArchivist]

*shrugs* The insurance costs at my company are undergoing no change whatsoever.

However, our insurance plans are already far above what the new law requires, so I didn't expect it to increase anyway.

[joe hx]

As far as I know, "ObamaCare" has yet to go in effect.

So what I think is happening is that insurance companies are flinching, expecting to get hit hard. Whether that blow will come or not, we'll have to wait and see.

[KitterCat]

Rates are going up this year because the insurance companies (along with cuts in Medicare) are going to be covering the taxes needed to run the new ObamaCare. The taxes are starting 2011. This coupled with the fact that starting in 2014 they are going to have to accept people with preexisting conditions means they are trying to get as much money now, since in 3 years time who knows if they’ll even be able to function.

Personally I’m waiting to see when the public itself will have another tax implemented on their paychecks to help cover the cost. After all medical care isn’t free and if enough private insurance companies go under its going to have to be funded someway.

[lordlundar]

Rates are going up this year because the insurance companies (along with cuts in Medicare) are going to be covering the taxes needed to run the new ObamaCare. The taxes are starting 2011. This coupled with the fact that starting in 2014 they are going to have to accept people with preexisting conditions means they are trying to get as much money now, since in 3 years time who knows if they’ll even be able to function.

Right, because they're barely able to function with their, what is it, 1000% profits in the last quarter? (and I really think I'm underestimating that value horrendously) Sorry, no. It's just a means to jack up profits as much as possible before they get called to task for looking after their profit margins instead of their clients.

[Andara Bledin]

Right, because they're barely able to function with their, what is it, 1000% profits in the last quarter? (and I really think I'm underestimating that value horrendously) Sorry, no. It's just a means to jack up profits as much as possible before they get called to task for looking after their profit margins instead of their clients.

This.

The last study I saw as regards health care costs and what gets passed on to the insured (which was quite some time ago) showed that over a 5-year period, the cost of care had risen something like 5% and the premiums charged rose something like 250%. During one quarter, the costs actually dropped, but the rates increased at the same rate they had been.

^-.-^

[KitterCat]

Considering that the profit margins for health insurance companies are at 3.3% or 2.2(depending on the chart your looking at) I wouldn’t say that they’re making record killings for the amount of money they handle. For a comparison that’s still in the medical world Pharmaceuticals/generic drugs make double that and even Health Care Advice makes a nice 9.3 profit margin. If you really want to complain about company’s making to much money look to the brewing company’s. At #1 with a nice 25.9%margin. Or Network and Communications equipment, but I don’t think you want your internet or cell phone messed with. And I don’t want my beer touched.

If your going to look at changing rates for each quarter of the year, changes would need to be made on policies. Every time I’ve been eligible for medical insurance through a company I’ve had to choose it in a very specific opening period when I was first hired (generally 30 days) or wait until open enrollment later that year. Those prices took effect for the rest of the year, because that was what I agreed to pay. I could cancel it at anytime though. My rate didn’t change just because during one quarter they made more money, but they also didn’t change if they made less money.

If we really want insurance companies to have rates drop several things need to change. One of the biggest I think is the need for a health care spending account for everyday use and having Insurance for catastrophic issues. Currently if ones lucky they get a medical debit card from their company after doing specific things, such as not smoking or starting an exercise program. I think it would be a really good thing if the option for most people were to have some small amount taken from their paycheck and put on a similar card for everyday medical expenses. This would cut down on the need for doctors to need to go through the insurance companies and drop their prices. The catastrophic insurance would be use for things like breaking a bone, cancer, staff-infections.


The next would be allowing issuance companies to sell across state lines. If I can find a better plan at a third of the cost in say Ohio, it shouldn’t matter that I live in Maryland. If enough people were to do that what ever insurance company that is in the area would start adjusting rates/services to entice customers. Currently due to laws we’re unable to do that.

[Bronzebow]

I agree with you, KitterCat. While I don't think medical insurance companies are completely innocent, I do think that they have received an unfair admonishment from our administration and from public pitchfork mobs. I think there's more to fault with how much people expect their health insurance to cover, just like every other form of insurance.

I wouldn't expect flood insurance to pay for your change of locks when you lose your keys. Why does medical insurance cover basic doctor's visits?

I also think that people in general need a major re-education on how to handle their health situations. More people need to learn how to take care of themselves, that ER visits are not for your cold or common flu, and that you don't need a CAT scan when your skin gets scratched. People need to learn this and change how they overtax the system.

On the other side, insurance companies are very much at the mercy of hospitals and doctors. Regulations give hospitals virtually all of the bargaining power because hospitals have more latitude in choosing what insurance carriers to accept. Doctors can then demand exorbitant fees for even the most basic of interactions, and insurance companies simply have to pay it or lose their clients for "lack of choices." But doctors themselves aren't fully to blame here. They have to cover their malpractice insurance to help cover themselves when people sue them for the stupidest things left and right. That goes back to the education of the people, and I think that there really needs to be some kind of tort reform for doctor lawsuits.

Just like how making abundant scholarships available increases the costs of attending college, increasing the risk for doctors to practice causes them to up their prices. Colleges can charge more because more students have scholarships. Don't have a scholarship? Well, you're going to pay more. Doctors can charge more because more people have medical insurance that will cover what they ask for. Don't have insurance? Well, you're going to pay more, too.

There could be a lot of work done to the cost of medications too, but that's a rant for another time.

That this Obamacare doesn't even touch hospitals and what they charge is pretty disturbing, but it's about par for a federal bandaid fix. Their view is that it would be better if everyone can afford the outrageous prices for anything medical related and assume that the price is a free market one not up for debate. That's the critical error with this reform, IMHO. If a dam is cracking, the solution is to fix the dam, not to widen the canal on the other side to handle the increased water flow. The former is a permanent fix. The latter is just the cheap, short term alternative that will bite you in the rear.

[Andara Bledin]

I wouldn't expect flood insurance to pay for your change of locks when you lose your keys. Why does medical insurance cover basic doctor's visits?

Apples to Oranges. Flood insurance is an additional insurance you put on your home, specifically to cover flooding because that is a huge hole in standard homeowners insurance. Now, whether homeowners insurance should cover the changing of locks when keys are lost is another issue entirely.

In the case of medical insurance, however, the cost of preventive maintenance that is covered in regular doctor visits is easily an insignificant pittance when compared to the costs of treatment and recovery associated with later-stage illnesses and conditions that could have been easily treated if caught sooner. If doctor's visits aren't covered, then people won't go, making the cost to the insurers rise astronomically for very little gain.

This very point is one of the main issues at the base of universal coverage. If we can get everybody covered for, at the least, basic medical checkups and minor treatments, then there will be an overall decline in the need for more costly treatments down the road.

I also think that people in general need a major re-education on how to handle their health situations. More people need to learn how to take care of themselves, that ER visits are not for your cold or common flu, and that you don't need a CAT scan when your skin gets scratched. People need to learn this and change how they overtax the system.

This is actually a symptom of the lack of care people often get when they are younger and a lack of means in adulthood. Many people never really understand how everything works. Plus, if you have no insurance or money, your only recourse ends up being the ER because they cannot deny you at least some attention, whereas a regular doctor or urgent care center can toss you for an inability to pay.

Then again, some people are just attention whores and need to be tossed out on their asses to make room for people who have legitimate issues. To combat the issue of abuse of the ER, Kaiser has instituted a not-insignificant fee for an ER visits that don't result in a hospital stay. This, hopefully, has pushed more people with non-emergency conditions to opt for the much-less-costly urgent care option. Of course, this also punishes those who have low-level emergencies during hours when urgent care is closed, which sucks and ends up being counter-productive, going back to my last point.

I do agree that the whole system needs an overhaul and that this would merely be a band-aid solution. Then again, considering the nature of most western medicine, it seems rather fitting, really.

^-.-^

[AdminAssistant]

In the case of medical insurance, however, the cost of preventive maintenance that is covered in regular doctor visits is easily an insignificant pittance when compared to the costs of treatment and recovery associated with later-stage illnesses and conditions that could have been easily treated if caught sooner. If doctor's visits aren't covered, then people won't go, making the cost to the insurers rise astronomically for very little gain.

This very point is one of the main issues at the base of universal coverage. If we can get everybody covered for, at the least, basic medical checkups and minor treatments, then there will be an overall decline in the need for more costly treatments down the road.

This!

One of my key aggravations are the people who want to reduce the frequency of women's exams, especially pap smears and mammograms. Excuse me, but WTF? They can't be that costly to the providers, and they help detect fucking cancer which I would think would be slightly important. And it scares me, because I'm supposed to start mammograms at the age of 30 due to family history. What if my insurance won't cover it, and the free options won't take me because I'm too young?