Sunday, September 18, 2016

An ‘October Surprise’ for Obamacare

Premiums /Prescription Coverage/Co-pays/Deductibles to INCREASE Dramatically

Did you know that according to the latest data, insurers have requested average rate hikes of nearly 24%, and that most of those hikes on the exchange have already been approved by regulators at a minimum of 17%? Notification of these 2017 increases is likely to arrive in consumers’ mailboxes at an inopportune time, just before Election Day.

Obamacare’s exchanges are collapsing, 16/23 state sponsored CO-OP health plans created by Obamacare have failed. If you go on the Marketplace to find a plan, your choices are limited with high costs, and your plan may change or disappear at anytime due to the volatility of the system. Many of the plans, lose contracts with facilities and doctors promised during sign-up. Yet, you’re stuck still paying a high premium and unable to get the services and coverage you need. For example, one local HMO carrier was signed with Children’s Hospital and then the contract was cancelled leaving a family unable to see a specialist or afford a necessary surgery. They are stuck paying for an insurance that is not covering their needs and cannot change because there aren’t any better choices on the Marketplace.

Insurers, including the largest United Healthcare, and the 3rd largest, Aetna have fled the exchanges to avoid further financial loss. Too many insurers lost incredible amounts of money, $500M+ up to $2B.

Premium hikes are also going up because the Obamacare risk corridors are expiring this year. The risk corridors have been a disaster. Instead of having a surplus as anticipated, the pool only had $1 for every $10 so now the insurers that have lost money are requesting $2.87 billion to make up for losses Without the risk corridor cash that was anticipated they have no other choice but to increase monthly premiums.

The insurers that remain in the Marketplace are demanding premiums so high, many people may decide to flee the exchange themselves and pay a penalty of the greater $695 or 2.5% of income. If this happens, which it looks as though there is no other alternative, the system is collapsing…a new Congress and new President will have quite a mess to clean up. This is a non bi-partisan issue.

In some states the issue is so severe the two largest insurers are asking for for rate hikes ranging from 60-88%. In another state, a carrier that covers 73% of the state exchange customers requested a 63% premium increase, and in one of our neighboring states, a very popular carrier actually asked for a 100% premium increase.

Can you imagine receiving a notice that your premium will be increasing in 2-months by 24%, 40%, 60%, 73%, or 100%. And as well that same premium’s coverage may be losing some of the doctors in the network and your deductible may be increasing?

The other shocking issue is people are receiving letters that their policies are being terminated by their insurance company by the end of this calendar year, 12/31/16, and they must find new insurance by 01/01/17 with a new carrier.  There are at least two major carriers sending out these letters.

In 2010, prior to Obamacare passing the president promised that the average family’s premiums would decline by $2500. This is obviously not the case.

This is the state of our healthcare system right now and for the next 6-12 months. Be prepared.

No one is safe. Not individuals, families, or small businesses. Whether you are on an individual, family, group, or Marketplace (Obamacare plan).
The options for plans are shrinking, coverage is diminishing while costs are rising. As well, if you do not have coverage, fines are anticipated to triple.

What can you do? Where do you even start?

The process of trying to figure out healthcare is overwhelming. There is help. Time is money, please don’t wait as premiums increase each month.
Allow an expert to help you sift through the chaos. Let someone with 15-years of experience in the industry that is a Licensed Broker and works as a specialized Benefits Consultant in over 11 states with access to plans on a national level help you find a plan that is right for you, your family, or your business.  I promise I can help. Give me a call and we’ll set up an appointment to find an affordable, comprehensive plan tailored for your situation. 

Don't wait! Time is money and the sooner the better!

Please reach to someone specialized in this field! 
Benefits Consultant: Stephanie Puryear-Licensed Broker-Health, Accident, Life
Phone: (847) 530-8943

New Sites: CNN, NBC, FOX, New York Times, Chicago Tribune

Sally C. Pipes is President, CEO, and Thomas W. Smith Fellow in Health Care Policy at the Pacific Research Institute. Her latest book is The Way Out of Obamacare (Encounter 2016).

Myth vs. Truth.....


1.    If self-employed or if you have your own business, you have to get your insurance through the Marketplace.Gov

2.    You have to wait until OPEN ENROLLMENT period, October-November to sign up for insurance  FALSE

3.    If you have an insurance plan in place you cannot change from that plan. You are locked into your plan until it expires.  FALSE

4.    If you have a small business, with less than 50 employees you have to have a group plan.  FALSE

5.    If you have in-network and out-of-network and you travel…If something happens and you haven’t met your deductible, you’ll will have to pay the out-of-network fees…. TRUE

7.    Next year if you don’t have health insurance the fines are expected to triple. TRUE

8.    Next year health insurance premiums are anticipated to increase an average of 40-70% (and the states have already approved this increased, they just haven’t announced this increase due to the elections).TRUE