Insurance renewal

[merrylander]

We bumped into each other over in AK but with a whole continent between us have never met face to face.

[piece-itpete]

NPR says that because of the mess on startup rates will almost certainly go up over forecasts because there will be fewer healthy people joining than planned.

Pete

[mpholland]

Originally Posted by piece-itpete

NPR says that because of the mess on startup rates will almost certainly go up over forecasts because there will be fewer healthy people joining than planned.

Pete

I see those as two independent issues.

[JBS...]

Originally Posted by whell

FYI - because your renewal is December 1, your group policy is actually avoiding the premium impact of the requirements for minimum essential coverage, increased taxes and fees, and community rating. If your company's renewal date was January 1, you'd have seen the premium impact of those changes in the paperwork you received. As it stands now, you'll not see that impact until your December 2014 renewal.

Yup, copied this straight from my open enrollment letter from work

"As the impact of the Affordable Care Act (ACA) becomes clearer, we are faced with some challenges for Medical Benefits in 2014. ACA impact on our bill will add approximately $600,000 to our 2014 spend.

o $300,000 for Taxes and Fees
o $300,000 in Base Premium increases

As a result, we need to make some changes to Plan Design and Employee Cost Sharing. The Plan Design changes will allow us to mitigate a portion of the increases in a way that can be managed by employees to not increase out of pocket costs. However there still must be an increase to your premium contribution."

Our renewal date is Jan 1

[barbara]

Originally Posted by piece-itpete

NPR says that because of the mess on startup rates will almost certainly go up over forecasts because there will be fewer healthy people joining than planned.

Pete

Since everyone has to sign up, the young healthy people will eventually join. I suspect that the young and healthy aren't feeling the urgency to sign up as quickly as the older, less healthy folks.

[JJIII]

Originally Posted by barbara

Since everyone has to sign up, the young healthy people will eventually join. I suspect that the young and healthy aren't feeling the urgency to sign up as quickly as the older, less healthy folks.

They are young, strong, and invincible! They also want to keep as much of their paycheck as possible. If you do the math it's easy to guess which way they will go.

"The penalty in 2014 and beyond

The penalty in 2014 is calculated one of 2 ways. You’ll pay whichever of these amounts is higher:

1% of your yearly household income. The maximum penalty is the national average yearly premium for a bronze plan.

$95 per person for the year ($47.50 per child under 18). The maximum penalty per family using this method is $285.

The fee increases every year. In 2015 it’s 2% of income or $325 per person. In 2016 and later years it’s 2.5% of income or $695 per person. After that it is adjusted for inflation.

If you’re uninsured for just part of the year, 1/12 of the yearly penalty applies to each month you’re uninsured. If you’re uninsured for less than 3 months, you don’t have a make a payment."

From here...

https://www.healthcare.gov/what-if-s...erage-in-2014/

Notice I didn't say this would be a wise decision, it's just what I think will happen more often than not. If that turns out to be true, how long can the plan survive without them joining?

[Charles]

Originally Posted by JJIII

They are young, strong, and invincible! They also want to keep as much of their paycheck as possible. If you do the math it's easy to guess which way they will go.

"The penalty in 2014 and beyond

The penalty in 2014 is calculated one of 2 ways. You’ll pay whichever of these amounts is higher:

1% of your yearly household income. The maximum penalty is the national average yearly premium for a bronze plan.

$95 per person for the year ($47.50 per child under 18). The maximum penalty per family using this method is $285.

The fee increases every year. In 2015 it’s 2% of income or $325 per person. In 2016 and later years it’s 2.5% of income or $695 per person. After that it is adjusted for inflation.

If you’re uninsured for just part of the year, 1/12 of the yearly penalty applies to each month you’re uninsured. If you’re uninsured for less than 3 months, you don’t have a make a payment."

From here...

https://www.healthcare.gov/what-if-s...erage-in-2014/

Notice I didn't say this would be a wise decision, it's just what I think will happen more often than not. If that turns out to be true, how long can the plan survive without them joining?

"As long as the grass grows, the water flows, and the FED's printing press still goes."

Chas

[JJIII]

Originally Posted by Charles

"As long as the grass grows, the water flows, and the FED's printing press still goes."

Chas

There is that....

[barbara]

Originally Posted by JJIII

They are young, strong, and invincible! They also want to keep as much of their paycheck as possible. If you do the math it's easy to guess which way they will go.

"The penalty in 2014 and beyond

The penalty in 2014 is calculated one of 2 ways. You’ll pay whichever of these amounts is higher:

1% of your yearly household income. The maximum penalty is the national average yearly premium for a bronze plan.

$95 per person for the year ($47.50 per child under 18). The maximum penalty per family using this method is $285.

The fee increases every year. In 2015 it’s 2% of income or $325 per person. In 2016 and later years it’s 2.5% of income or $695 per person. After that it is adjusted for inflation.

If you’re uninsured for just part of the year, 1/12 of the yearly penalty applies to each month you’re uninsured. If you’re uninsured for less than 3 months, you don’t have a make a payment."

From here...

https://www.healthcare.gov/what-if-s...erage-in-2014/

Notice I didn't say this would be a wise decision, it's just what I think will happen more often than not. If that turns out to be true, how long can the plan survive without them joining?

The question isn't how long the plan can survive, but rather how long will it take the young and healthy to figure out they are better off getting the insurance.
Sure, when they are feeling invincible, they think they don't need it..... But one trip to the doc for the flu or some other not so serious reason will convince them otherwise when they see what an office visit/ X-ray/ etc. costs out of their own pocket.

[BlueStreak]

Originally Posted by piece-itpete

NPR says that because of the mess on startup rates will almost certainly go up over forecasts because there will be fewer healthy people joining than planned.

Pete

And probably still be cheaper than going directly to the ins. companies.