Friday, January 22, 2021
Hawai'i Free Press

Current Articles | Archives

Wednesday, March 27, 2013
Hawaii Health Insurance Rates to Rise 12% to 21% Next Year
By Andrew Walden @ 1:39 PM :: 6017 Views :: Hawaii Statistics, Health Care

by Andrew Walden

A report issued this month by the Society of Actuaries indicates that Hawaii health insurance premiums are set to rise 12% to 21% as the Hawaii Health Exchange opens January 1, 2014.  Responding to the report, Health and Human Services Secretary Kathleen Sebelius told reporters: “As a former insurance commissioner I have watched what transparency does to a market.” 

Hawaii’s Health Exchange has been criticized for including Insurance Company representatives on its board and for being exempted from the State Sunshine Law.

Here is the rundown:  

Sebelius: Some Could See Insurance Premiums Rise

WSJ: “As a former insurance commissioner I have watched what transparency does to a market,” Ms. Sebelius said. “This is the first time ever in the history of the United States that insurance companies have to file their rates, it has to be very transparent, they have to offer the same kind of coverage without 5,000 tiny little lines and internal caps, and they have to compete for customers. And I am a believer in the market strategies that in and of itself will minimize the rate impact.”

As The Wall Street Journal reported last week, some insurers have already begun signaling they could dramatically increase prices for people buying policies in the individual market to compensate for restrictions on how they treat consumers, as well as new fees and requirements that they provide bigger benefits packages.

The Society of Actuaries, a nonpartisan professional association, has issued a new report warning that the cost of medical claims in the new individual-insurance market could rise by an average of 32% per person over the first few years the law is in place, as more people with higher medical needs get coverage, and that the impact will be very different depending on the state. Medical bills are another key factor in determining premiums.

read … The Wall Street Journal

“I have watched what transparency does to a market.”

Society of Actuaries: Cost of the Future Newly Insured under the Affordable Care Act (ACA) 

“the costs shown in the tables are at projected 2014 levels”

Figure S-1. Summary of “Ultimate” Findings- Assuming All States Expand Medicaid

State

% Uninsured Pre-ACA

% Uninsured Post-ACA Elasticity

% Uninsured Post-ACA Utility

Size of Non-Group Pre-ACA

Size of Non-Group Post-ACA

% of Non- Group in Exchange

Average Non-Group PMPM
Pre-ACA

Average Non-Group PMPM
Post-ACA

% Change in Non-Group PMPM

Hawaii

8.0%

3.8%

3.9%

26,584

73,534

83.8%

$374

$456

21.9%



Figure S-2. Summary of “Ultimate” Findings- Assuming No States Expand Medicaid

State

% Uninsured Pre-ACA

% Uninsured Post-ACA

Size  of Non-Group Pre-ACA

Size  of Non-Group Post-ACA

% of Non- Group in Exchange

Average Non-Group PMPM
Pre-ACA

Average Non-Group PMPM
Post-ACA

% Change in Non-Group PMPM

Hawaii

8.0%

4.9%

26,584

83,153

85.5%

$374

$421

12.6%

 

Medical Claims Costs to Rise in Individual Market under Health Law

NCPA March 27, 2013

Medical claims costs -- the biggest driver of health insurance premiums -- will jump an average of 32 percent for Americans' individual policies under President Barack Obama's overhaul, according to a study by the nation's leading group of financial risk analysts, says the Associated Press.

  • While some states will see medical claims costs per person decline, the report concluded the overwhelming majority will see double-digit increases in their individual health insurance markets, where people purchase coverage directly from insurers.
  • The disparities are striking: By 2017, the estimated increase would be 62 percent for California, about 80 percent for Ohio, more than 20 percent for Florida and 67 percent for Maryland.
  • Much of the reason for the higher claims costs is that sicker people are expected to join the pool.

The report did not make similar estimates for employer plans, because the primary impact of Obama's law is on people who don't have coverage through their jobs.

The administration questions the design of the study, saying it focused on only one piece of the puzzle and ignored cost relief strategies in the law such as tax credits to help people afford premiums and special payments to insurers who attract an outsize share of the sick.

But a prominent national expert, recently retired Medicare chief actuary Rick Foster, says the report does "a credible job" of estimating potential enrollment and costs under the law, "without trying to tilt the answers in any particular direction."

Source: "Claims Costs that Drive Premiums Will Rise 32 Percent in Individual Market under Health Law," Associated Press, March 26, 2013.


 

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

ACA Signups Hawaii

ALEC

Alliance Defending Freedom

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Ballotpedia Hawaii

Better Hawaii

Blaisdell Memorial Project

Broken Trust

Build More Hawaiian Homes Working Group

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

Coffee Break

DeedySupport.com

DVids Hawaii

E Hana Kakou Kelii Akina

FIRE

Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes

KeyWiki

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii

NARTH

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Hawaiian

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT