Opposing View for Insurance Premium Rates

It’s not often that an article written asks itself to be pitted against somebody with an opposing view, but that is exactly what USA Today did when they asked The Galen Institute to write their view on next years insurance premium rates. USA Today’s camp states that premium increase will be at a minimum and that for Obamacare critics there is never any good news, and that critics think “Obamacare is a ready to-implode disaster.” The article goes on to quote several rate requests submitted for 2016, and says that any large rate hikes are due to miscalculated rates from 2015 and the need to “regroup.” Read the full USA Today article HERE

The Galen Institute writes their opposing view with early quotes of, “President Obama is jawboning regulators to lower rates, but that can only go so far when plans face multi-million dollar gaps between premium income and claims payments” and ” To offset the cost of the Affordable Care Act’s many new mandated benefits, the most popularly priced plans have ultra-limited networks plus high out-of-pocket costs and deductibles” This goes to show that things are not always as they seem. USA Today is quoting on smoke and mirrors rather than what is behind the facade.

You can quote premium rate increases, but you have to look at what those rate increases are covering. A rate increase today of 6% is like a 10% rate increase pre-ACA. The rates might not look like they are increasing that much, but when you look at the broad picture of insurance plans and premiums before ACA vs. current pricing, the increase is much larger than even Grace Marie Turner of the Galen Institute wrote about. Read The Galen Institute’s opposing view HERE

What were your healthcare premium costs like before the ACA compared to what they are now? What is the percentage of your increase over the years?

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