Jessie ----
by on June 13, 2018
Just when we thought things couldn't get any worse, and cost us more money. Word is out, that because of policy changes, those paying Obamacare premiums next year, will see rate hikes. Those whom are older, and in poorer health, will feel the crunch most.
The American Academy of Actuaries, blames the elimination of the individual mandate penalty and the expansion of cheaper health plans with fewer benefits as contributing to the 2019 premium hikes. What a bunch of hogwash. Premiums have been rising each year, ever since the law was passed, without being read.
Even though the individual market had stabilized, it now now faces a potential deterioration of the risk pool due to policy changes that reduce incentives for healthy individuals to enroll in Obamacare marketplace plans.
So as a result, some insurers are proposing rate increases from regulators next year have cited the repeal of the mandate penalty as a primary reason for the request.
In New York alone, insurers have requested an average hike of 24%, and in Washington state, 19%.
The elimination of the penalty, expected to increase premiums as unsubsidized lower-cost healthy individuals will be more likely to not buy coverage. And one other thing that will effect the premium rates is Trump's executive order expanding access to association health plans, such as those obtained by trade groups, and stretching the maximum length of short-term limited duration plans from three to 12 months .
Of course, all of this is being blamed on Trump. This Obamacare, was designed to fail, and lead to a single payer plan, which Democrats pushed for from the beginning. It stands to reason, that the more people you put on a system, who don't pay, will drain the coffers. You can't pay out, more than what you take in.
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