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Thursday, June 11, 2015

Health Care Reform Articles - June 11, 201

Why Are The 2016 Obamacare Rate Increases So Large?

GUEST POST WRITTEN BYRobert Laszewski
You might recall that I have said we wouldn’t see the real Obamacare rates until the 2017 prices are published in mid-2016. By then health plans will finally have had a couple of years of credible claim data and two of the three “3 Rs” reinsurance provisions subsidizing the insurance companies will have gone away.
I have also made the argument that after two years the Obamacare enrollment is coming up way short of what it needs for us to be assured that we have a sustainable risk pool—enough healthy people signed up to pay the costs for the sick.
Instead of moderate rate increases for one more year, the big rate increases have begun. They are particularly large among the health insurers with the most enrollment—the carriers with the most data.
Texas Blue Cross stands out. The health plan commented in its federal government rate filings that it covered 730,833 Obamacare individuals in 2014 with premium of $2.1 billion and claims totaling $2.5 billion––for a medical loss ratio of 119%. The plan further commented that, after the “3Rs” reinsurance adjustments, they lost 17% to 20% of premium in 2014–that would be about $400 million. And, they are only asking for a 20% rate increase.
While we won’t see all of the rates in all of the states for a few months, some state regulators have begun to make the 2016 rate actions public:
• CareFirst Blue Cross of Maryland is asking for a 34% rate increase on its PPO plan and a 26.7% rate increase for its HMO. CareFirst has an 80% market share in the Obamacare exchange and only 30% of the eligible Maryland market has signed up on the exchange.
• In Oregon, where less than 35% of the eligible have signed up on the exchange, the biggest insurer with 52% of the market, Moda, has asked for a 25.6% increase. Lifewise, with a 19% market share, has asked for a 38.5% increase.
• Blue Cross Blue Shield of Tennessee, with a 165,000 members making up 70% of the Obamacare exchange is asking for a 36.3% increase. The second biggest player, Humana HUM +0.93%, is asking for a 15.8% increase. Less than 40% of the eligible exchange market signed up in Tennessee.
• Georgia is the second biggest Obamacare market for Humana, having enrolled 254,000 people out of a total market of 479,000, and Georgia “maybe its biggest misstep”. Its CEO has said about Georgia, “We can’t have one business being subsidized by another business.” Humana is asking for 2016 individual plan rate increases from 14.8% to 19.44%.
• In Iowa, with the lowest enrollment rates in the country, and where its biggest Obamacare insurer went broke last December, Wellmark Blue Cross, which only sells off the exchange, is asking for a 43% increase on its Obamacare compliant policies. Coventry, which has 47,000 Obamacare customers, is asking for an 18% increase for its on-exchange business.
• The Kansas insurance department has not made its rate increases public yet but has said that plans will increase by as much as 38%. Less than 40% of the eligible have so far enrolled.
• Pennsylvania is not encouraging with market leader Highmark asking for increases ranging from 13.5% to 39.65% and the Geisinger HMO asking for increases from 40.6% to 58.4%. Pennsylvania enrolled 50% of the potential exchange market in 2015. 

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Wednesday, June 10, 2015

Health Care Reform Articles - June 10, 2015

Obama to Supreme Court: You wouldn’t dare kill Obamacare

 Opinion writer
President Obama uttered more than 3,600 words on the stage of Washington’s Marriott Wardman Park ballroom on Tuesday, but his message could be summed up in three: You wouldn’t dare. 
He was speaking not to the hundreds of hospital administrators assembled for the Catholic Health Association’s conference but to five men not in the room: the conservative justices of the Supreme Court, who in the next 21 days will declare whether they are invalidating the most far-reaching legislation in at least a generation because of one vague clause tucked in its 2,000 pages.
Obama’s appeal to the justices, devotees of judicial modesty all: Do they really wish to cause the massive societal upheaval that would come from killing a law that is now a routine part of American life? 
“Five years in, what we are talking about is no longer just a law. It’s no longer just a theory. It isn’t even just about the Affordable Care Act or Obamacare,” he said. “This is now part of the fabric of how we care for one another. This is health care in America.”
Without mentioning the looming decision, Obama warned of its devastating potential. “Once you see millions of people having health care, once you see that all the bad things that were predicted didn’t happen, you’d think that it’d be time to move on,” he said. “It seems so cynical to want to take coverage away from millions of people, to take care away from the people who need it the most, to punish millions with higher costs of care and unravel what’s now been woven into the fabric of America.”
The appearance had been scheduled long ago, but White House officials elevated the importance of the speech to keep pressure on the Supreme Court, which Obama said at a news conference in Germany on Monday shouldn’t have even taken up the case. Obama said trashing the federal health-care exchanges, as a hostile Supreme Court ruling would do, is “not something that should be done based on a twisted interpretation of four words.” 
The conservative justices, like conservative critics of the law generally, are unlikely to be persuaded by Obama’s recitation of the merits of the law, which he repeated at length Tuesday. But they may well be reluctant to upend a law that now has broad acceptance in American society. 

Obama gives sweeping defense of healthcare law as Supreme Court ruling looms
by Noam Levey - LA Times
President Obama reentered the political battle over healthcare Tuesday, delivering an extended defense of the Affordable Care Act as the Supreme Court prepares to issue its ruling on a case that could strip away health insurance from millions of Americans.
“It seems so cynical to want to take coverage away from millions of people,” Obama said, taking a swipe at the Republicans who have backed the latest legal challenge to the law, “to take care away from people who need it the most, to punish millions with higher costs of care and unravel what’s now been woven into the fabric of America.”
Obama’s address, to a gathering of hospital leaders from the Catholic Health Assn., comes at a pivotal moment as his signature domestic achievement faces its gravest threat since being narrowly upheld by the Supreme Court three years ago.
The current legal challenge brought by conservative activists argues that a strict reading of the statute makes insurance subsidies in the law available only in states that established their own insurance marketplaces through the law.
That would strip subsidies from residents of more than 30 states that rely on the federal HealthCare.gov marketplace. More than 6 million people could lose coverage almost immediately, with millions more expected to follow as insurance markets collapse in many states.
The ruling, expected this month, is likely to reignite a fierce national political battle over healthcare that had been petering out in many places as more Americans got coverage and GOP lawmakers looked to move on to other issues.



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