WH: Health Insurance Premium Update

[ProSense]

Health Insurance Premium Update

Posted by Nancy-Ann DeParle

Today, we received two updates on health insurance premiums. The Kaiser Family Foundation’s annual survey on health insurance looked back at the premiums insurers charged businesses and families in 2011, while the Office of Personnel Management looked ahead to 2012 and provided some important insight into the premiums large employers are negotiating with insurers for the coming year.

First, the Office of Personnel Management announced that the average premium for the 8 million people enrolled in the Federal Employees Health Benefits (FEHB) program will increase by 3.8 percent in 2012, nearly half of the 7.3 percent increase in premiums for 2011. The premium increase for the popular Blue Cross Blue Shield Standard Plan will be only 1.6 percent for 2012.

Second, the Kaiser Family Foundation released its annual survey on health insurance premiums, which found that that premiums increased by 9 percent in 2011.When evaluating the Kaiser study, it’s important to remember a few important facts:

• High Insurance Company Profits. The Kaiser report shows that premiums increased 9 percent in 2011. These premiums were generally set in 2010, when insurance companies thought medical costs would be significantly higher than they turned out to be. The Bureau of Labor Statistics found that the health insurance employer cost index (a measure of the price of health care services) was the lowest it has been in over 10 years in the first half of 2011. Additionally, some insurers assumed that the Affordable Care Act would dramatically raise their costs. In the end, both assumptions were wrong – but insurance companies still charged high premiums and earned impressive profits. Wall Street analysts’ review of results from the first quarter of 2011 found that 13 of the top 14 health insurers exceeded their earnings expectations, with profits that were over 45 percent higher than estimated.
  
  
• Policies to Hold Insurance Companies Accountable Kicking In. Key Affordable Care Act policies are starting to take effect that make insurance more affordable. For example, insurance companies that want to raise premiums for 2012 by more than 10 percent will have to publicly justify their rate hikes. And a growing number of States have the power to reject unjustified premium hikes. Additionally, insurers are required to spend at least 80 percent of your premium dollars on medical care, rather than advertising, overhead and bonuses for executives. If they fail to meet that standard, they will be required to provide a rebate to their customers.
  
  
• Premium Growth is Slowing. The data released by Kaiser cover 2011, but signs indicate that premium growth will slow significantly in 2012. On September 20th, Mercer, a well-known independent benefits consulting firm released a survey of employers showing that their health insurance cost increases will average 5.4 percent for 2012, the smallest increase it has measured since 1997. Goldman Sachs reported “Widespread anecdotal observations suggest health reform may be a factor contributing to slower growth in per capita health spending.”
  
  
• Exchanges Work. The Affordable Care Act established Affordable Insurance Exchanges – State-based marketplaces where consumers will be able to purchase affordable, private health insurance. Examples of these kinds of marketplaces already exist and in two important cases, premium growth is falling.
  
  
  • As noted earlier, the average premium for 8 million Americans who get their insurance through the Federal Employees Health Benefits (FEHB) program will increase by 3.8 percent in 2012. The FEHBP was a model for the Affordable Insurance Exchanges included in the Affordable Care Act.
    
    
  • CalPERS which insures 1.3 million California workers and retirees through a marketplace that is similar to the Exchanges reported that premium growth in 2012 would be 4.1 percent, down from 9 percent in 2011.

These examples only underscore what independent experts have already told us: Exchanges and other tools in the law will help save money for middle-class families.

• Other Key Statistics: Millions Already Helped by Reform. Other key statistics from the Kaiser report include:
  
  
  • 2.3 million young adults were added to their parents’ plan as a result of health reform. This number is larger than the 1 million uninsured young adults who gained insurance since it includes those switching from an individual market plan.
    
    
  • 47 million Americans who get insurance at work were helped by the Affordable Care Act rule that ensures preventive care is covered without a co-pay or deductible. 31 percent of workers were in plans that added preventive services and 23 percent were in plans that lowered their cost sharing due to the Affordable Care Act.
    
    
  • Contrary to what opponents of the Affordable Care Act claimed would happen, 60 percent of employers continue to offer health insurance to their employees – compared to 59 percent in 2009. And when the law is fully implemented, employers will have new tools that will make it easier for them to provide benefits to their workers.

The Kaiser report is informative, but it’s a look backwards. When we look to the future, we know that the Affordable Care Act will help make insurance more affordable for families and businesses across the country.

[Name removed]

1. Deleted message

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[Tarheel_Dem]

2. K & R

[Mimosa]

3. Professional B.S. 24/7

Too bad many of us live in the REAL WORLD where we can't afford health insurance. :(

ProSense, do you even know people who make less than $70K a year, or more specifically, people who make $30-40K?

If you actually knew real people -ages 50 and up- whose employers have told them they must pay their own $1000 per person health policies or else do without health insurance, you'd stop this propaganda. Because it IS propaganda for political purposes.

I had to give up my health insurance as have many. I don't why you keep posting this stuff over and over. How many under 26 year olds are really on their parent's policies? And why the hell would that be considered a 'good thing' anywhere in any developed nation?

[ProSense]

4. Are

"ProSense, do you even know people who make less than $70K a year, or more specifically, people who make $30-40K?

If you actually knew real people -ages 50 and up- whose employers have told them they must pay their own $1000 per person health policies or else do without health insurance, you'd stop this propaganda. Because it IS propaganda for political purposes."

...you assuming the people I know are fake? If you're going to post comments that rely on a set of bullshit assumptions, then you need to think twice before posting.

[Name removed]

6. Deleted message

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[ProSense]

8. Here's

"Your posts are SPIN from White House.gov"

...more spin from the "White House.gov"

www.dailykos.com/story/2011/09/27/1020684/-KFF-report:-Employer-based-health-premiums-take-big-jump-in2011

Employer-based health premiums take big jump in 2011

"Couple comes face to face with reality of 'Obamacare'"

Now, for the rest of your ridiculous comment:

ProSense, you do not post about the circumstances of people you know. Most of your posts here from DU are spin, P.R. to make depressing facts sound better than they are. You accentuate the little which is positive when for many things are getting very depressing, You seem to have a professional beat to cover.

I notice that some people who don't like to deal with facts prefer to employ tactics that make them sound personable while introducing bullshit straw men and moronic claims ("You seem to have a professional beat to cover" or "blue links"), but you must deal with reality. The WH post is an assessment of Kaiser's survey. Kaiser doesn't work for the WH.

There's nothing wrong with doing your job. But it would make many of us feel better and even trust you more if you would admit you're a paid political operative. There are messages the White house needs to get out to baseline Democrats. The press releases with positive spin are intended to make us feel things are steadily improving.

Idiotic. Really idiotic!

Let the idiocy speak for itself.

I think if YOU opened up and told us you are indeed a paid professional who believes in your mission, and are paid to keep us in the trenches informed, we'd trust you because we'd know where you're coming from. Your posting ID "ProSense" is as obvious a PR handle as it comes. An official messenger from the Obama's administration deserves respect. But you can't expect people to fall into step and follow directions, repeat talking points for political purposes. . I know I don't dislike the president. I never thought of Obama as a potential diety. He's a good man afaik. My disappointments aren't terminal or malignant.

If you and the couple of other 'pros' posting here would speak openly with the rest of us, sort of as Carville and Begala related to average Dems during Clinton's first term, you might be surprised how much more civil our conversations could become. The communications need to be two way. And we all need to be respectful.

Many of your blue links convey the administrations messages on issues for the day, the week. I've seen talking points change from the top after you'd posted them, then the next week you went with the new message even after it was 180 degrees different from your original post and links.

I think the ambiance around Democratic Underground would improve if you and the other professional colleague would get permission to speak as offical admin reps. Nothing much would change. I think you really listen to those of us who consistently hammer serious points worth sending 'upstairs'. I think I have seen you have conveyed the sincerity of hundreds of stalwart Democrats to where the president and his closest aides can evaluate what's going on with the people who began working for Obama and contributing to his campaign as far back as 2006-2007. October 2007 was when I began considering Obama as President. However after his 2004 Convention speech I predicted he would become president. I had predicted Bill Clinton would become president when he delivered the so-called endless speech way back in 1988, was it?

Once I briefly PMed you and you didn't answer, so I'm writing here in the open. I think you are a conduit. I believe your impressions and info may have helped wake up those in the campaign. I still believe President Obama can achieve some great things. But he NEEDS us and regular people, even those who lean republican, behind him. He needs us to understand the real obstacles which are in the way. Honesty is the best strategy.

I'd like to talk more later. About how free trade policies are hurting. Are we really stuck into accepting Australian and Canadian beef in exchange for being able to sell our poultry to trading partners? Is there any way to bring back jobs to America? Why must everything we buy be made in China? (I've sensed President Obama doesn't much like the Bush/Clinton precedents) These are all more important issues which affect every one of us as well as the children in the future.

Democratic Underground is going off the rails with endless divisive time wasting topics like the Perry-Harris/ Walsh emotional mudwrestling. You're a leader here. You can help lead us to real discourse and unity (to a degree)because it appears your job is to try to influence the agenda on this board. But if you keep trying to persuade us things are better than we have cause to believe we'll not trust you.

I believe there is small but real cause to believe quite a few things are improving. Yes, President Obama's administration is moving slowly, carefully and incrementally. If we can honestly discuss the moves, the changes, DU will get better. I see you as a power because you are obviously a trained professional.

Let me conclude by saying the above is drivel!

[SkyDaddy7]

14. Thank-you!

I had to speak up on this one because I have seen my drug cost shrink from around $700 to around $200 due to the ACA...I know two families who have kids in college that get to continue insuring them & are very happy about that!


I don't see why so many here on DU try as hard as they can to SHIT on the ACA...What do they think they will get in return? It simply does not make sense. IMHO.

[eridani]

26. We are shitting on the underlying moral value

Which is that people with more money deserve good health care, and people without don't. I'm glad that families who can afford to insure their adult kids are happy. Presumably, kids whose families can't afford to insure them deserve this?

[SkyDaddy7]

13. I am permanently disabled due to a spinal cord injury...

My life has greatly improved due to the ACA! I am so tired of people trying to SPIN it like it is not done anything good at all for POLITICAL REASONS!

My drug cost were well over $700 before the ACA was being debated...Roughly six months after the debate started drug co. changed their requirements for low income people like myself to get FREE RX directly from the Co. that saved me $269.00...Secret meetings had results.

The ACA has reduced my RX cost down from just under $500.00 to less than $200 starting this year!


So, the ACA is helping & will continue to help as more of it goes into effect. I know this does not play well on the new DU.

[Mimosa]

21. If you are permanently disabeled you must have SSDI or worker's comp

There is NOTHING in 2010's ACA which changed disability regulations.

[SkyDaddy7]

30. Did I say there was?

I understand you have nothing to say about the issues I covered so why waste the time replying?

SSDI has NOTHING to do with covering RX cost in case you were not aware of that.

[slay]

5. Agreed

ya can polish a turd - but it's still a turd. we needed universal healthcare - what we got was a gift to the insurance industry. ugh.

[karynnj]

11. Can you find 60 Senators and half the House who would vote for it?

Bernie Sanders spoke of about 10 Seantors being for it - and that was in 2010!

[Name removed]

12. Deleted message

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[Supersedeas]

9. the reality of the numbers is really stunning.

[eridani]

29. Yes. Stunning how small a percentage of the current population has benefits so far

I suppose if you sent a lifeboat to pick up 10 our a 100 people who were drowning, you'd expect the other 90 to give you a big cheer?

[karynnj]

10. You ask how many under 26 are on their parents' plan because of the Obama plan- that is in the op

Now as to whether that is a good thing - I have three daughters who all think it a good thing. The oldest, who just turned 26 and is on our plan until the end of the year, is a graduate student. The middle one, who has been on our plan since she left a job working with homeless families at a Catholic Worker project and was preparing to start graduate school. My youngest is finishing her elementary education degree. Being on our plan, will be useful as many graduates do not immediately get full time teaching jobs.

We are not alone among our friends in being grateful for this.

[eridani]

17. 20% of 26 year olds are on their parents' policies

Which is fine, but the set of moral values underlying this policy is absolutely appalling. Do your parents have insurance, and can they afford to add you? Then you deserve health care. If your parents are uninsured and/or they can't afford to add you, then you don't. Disgusting.


(Some 26 year olds have their own insurance through employment--not sure what that percent is.)

[Mimosa]

24. At age over 55 my parents are DEAD! And the health insurers have priced out me and more than half m

How may people can afford over $1000 a month plus co-pays for health insurance premiums.

[eridani]

27. You don't matter--only those whose parents can afford to continue

--insuring them matter. :sarcasm:

[Vinca]

7. If premium growth is slowing, why is MSM reporting a 9% increase?

It's becoming more and more obvious a public option is necessary to create competition with private insurers.

[ClarkUSA]

15. Why Health Premiums Increased By 9 Percent In 2011

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=433x784695#784716

[eridani]

28. Not on my planet. Yet another increase. n/t

[eridani]

16. Allowing insurance companies to raise rates by 9% a year is an absolute outrage

There is no real regulation. Other countries with universal health care and private insurance DICTATE costs and benefits to insurance companies. That is the only acceptable form of regulation.

[frazzled]

32. Health insurance premiums increased 119% between 1999 and 2008

Is that what you want? I remember hearing of increases of 39% and more in one year. The status quo was intolerable, but I don't recall people complaining about it for all those years (I was screaming).

They can't raise them now beyond 10% without scrutiny and possible rejection, and if they spend less than 80% of their earnings on actual health care, you're going to start getting back a check in the mail. They are restricted by law now (and not all the provisions have kicked in yet) from crazy increases.

But if you prefer how it was before, knock yourself out. But you're wrong.

[SidDithers]

18. Facts are good...

:thumbsup:

Sid

[Name removed]

23. Deleted message

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[slipslidingaway]

19. When does the $2500 reduction in premiums, per family, per year kick in? nt

[Mimosa]

22. NEVER.

Supposedly there is some formula which will give us tax breaks if we are paying -after 2014- over 10% 0f our INCOMES to health insurance.

[slipslidingaway]

31. Same as listening to all ideas and everyone having a seat at the table :( n/t

[truedelphi]

33. Thank you for that info. And most people do not

Realize that one of the more onerous provisions of the "Affordable HC Act" is the one that strips some 500 hundred BILLIONS of dollars out of Medicare. Supposed because of waste and fraud. But in actuality, it will simply gut the program.

[Liberal_Stalwart71]

20. Bookmarking! Thanks!! n/t

[Mimosa]

25. Bookmarking is smart, Liberal Stalwart.

I fear about half of the american population will be struggling and/or uninsured after 2014.

When Health insurance premiums this last year went up by 1/3rd and cost over 30% of my income I had to drop Blue cross blue Shield. being over 55 with preexististing conditions i was denied covereage by 2 other companies (which i also could not afford).

Blue Links, what can i do???

Wait until 2014!