Health Insurers Warn About Rising Premiums

Joe Weinlick
Posted by in Healthcare


 

When President Obama campaigned for his first term as president, he promised that healthcare premiums would decrease by $2,500 for a typical American family with his plan for health reform. By the end of his first term, premiums had actually risen by more than $3,000 per family. With Obamacare set to go into effect during his second term, experts anticipate another increase in premium costs. As a healthcare professional, you must understand how these increased insurance costs could affect the care you deliver.

 

One of the biggest effects of increased healthcare premiums is that fewer employees will be provided with health insurance as part of their benefits packages. Chad Terhune of the "Los Angeles Times" reports that only 53 percent of California residents get their health insurance through work, which is a decrease from 62 percent in 2000. Due to rising insurance costs, fewer employers are offering company-sponsored insurance coverage. Terhune also reports that the Robert Wood Johnson Foundation found that 47 states, along with the District of Columbia, experienced a substantial decline in the number of residents with employer-sponsored coverage since 2000. Some workers are choosing not to accept employer-sponsored coverage because they cannot afford to pay their portions of the healthcare premiums.

 

Anna Mathews and Louise Radnofsky of "The Wall Street Journal" reported that health insurance companies have actually warned insurance brokers that healthcare premiums will increase for small businesses and individual policyholders once Obamacare goes into effect. In 2014, consumers could end up paying double what they pay now for individual plans. This is a stark contrast to the Obama administration's claim that the health reform plan will make health insurance more affordable. You may find that patients who cannot afford these higher premiums will resort to skipping important medications or failing to undergo tests that are needed to diagnose or monitor serious health conditions.

 

One of the provisions of the Affordable Care Act is that health insurance companies must accept everyone who applies for coverage. The law also forbids health insurance companies from charging more because a customer has a serious health condition. Insurance experts predict that these provisions will drive up premium prices, as eight states have already tried imposing these conditions on insurance companies. In Kentucky, rising insurance costs forced the government to repeal much of the law. Several of the other states modified the provision against charging people more for coverage based on the presence of chronic health conditions.

 

Merrill Matthews and Mark E. Litow of "The Wall Street Journal" say that some actuaries are predicting a 50 percent increase in premiums for individual policies. Small businesses will also see a significant increase. Increased healthcare premiums are not the only issue causing controversy. People who apply for subsidized healthcare under the new plan will be forced to fill out dozens of forms with information about their incomes and employment statuses. These administrative hassles could also deter people from getting the healthcare they need.

 

Once the Affordable Care Act goes into effect, you are likely to come across several patients who are forced to drop their insurance coverages or choose plans with higher deductibles due to increased healthcare premiums. Until then, healthcare professionals must continue to provide the best care possible to a diverse patient base.

 

(Photo courtesy of freedigitalphotos.net)

 

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  • Melissa Kennedy
    Melissa Kennedy
    Wow! This is such a great discussion!@Angel - You bring up many valid questions. These are some of the same concerns that lots of other industry professionals are worried about. In the end, the people who pay the most are the ones who can least afford it.@Sharon K - It happens often. However, it's doubtful that the insurance company actually paid that price for the equipment. They tend to have much lower prices negotiated than a cash customer would pay.@Mary - Does the doctor you work for offer discounts for cash patients or do they end up paying more than the insurance companies pay?
  • Angel R
    Angel R
    Big Pharma needs to be reigned in, it has been done in Europe and in many other countries.  The pharmaceutical industry says it spends most of their money on research and development.  While that statement may or may not be completely true the amount of money that transpires and it's profits can be washed out by a hefty payroll, executive perks, commissions, and stock dividends.  The Europeans have something to show us.  In Germany big pharma tried to muscle government by stating the same thing we hear here in America about the cost of R&D.  europe said to the companies your right R&D cost too much but if you are seeking a patent then the drug your researching and developing must be significantly better/ different than the ones with existing patents or generics.  The pharmaceutical industry quickly understood that their game was over, they picked up and set up shop here in the US.  Here in the USA insurance companies negotiate (Through pharmaceutical managers) better rates than cash paying customers at the same time offering rebates to the pharmacies making it difficult to track details of private negotiations.  These negotiated rates benefit all profit takers except the patients that need these lifesaving medications who pay exorbenant fees in actual cost and deductibles.  We need to do what has successfully worked in other countries with respect to all aspects of caring for our health.  Can anyone tell me why is it cheaper to buy many of the top 50 medications prescribed here in the US in other countries?  Please don't feed me the same song and bull that medications manufactured and sold in other countries by the same name and pharmaceutical companies are less safe than in America.  We have been indoctrinated to buy that package of goods but we can no longer afford either individually or as a country to just PAY!  Can you say lobbiest...  Large sums of money are doled out to our countries leaders, pharmacies and physicians.  
  • Sharon K
    Sharon K
    Insurors need to take an active interest in the pharmauetical companies.  Research cost, effectiveness and redundancy and marketing practices.  this is an area of cost that is out of control!!!Also. Medicare/medicaid is very inefficient in the way durable medical equipment is rented and purchased.  i had a client who received a medical bed that was billed at 8,000 dollars?  Yes there are some cost for research and development.  However, this particular bed had your typical hospital bed functions(manual,no more!) additionally, the bed had a mesh enclosure to keep the client frommaking a bad judgement call and climbing/falling out of bed.  i happen to know that this 8,000.00 bed is now being used in the home as a regular ed without the mesh enclosure. Even allowing for R&D cost to ensure the mesh was not designed in an unsafe manner, there is no way this bed could be worth 8,000.00.  These companies seem to get away with robbery.  Just a couple of thoughts.
  • William W
    William W
    I'm not surprised at all. Several companies are already now charging too much for coverage. It looks like I will end up not having health insurance. Unless I can get at least $15,000 more in pay, I can not afford to pay 4-6 hundred a month in premiums!
  • Susan W
    Susan W
    My husband had to drop our insurance because we would not be able to pay our monthly bills.  How is that for the damage of Obama care???
  • Mary W
    Mary W
    I work in a private MD's office, and see more self-pay pt. everyday. It is very unsettling as a nurse. Healthcare is almost unaffordable for most of us anymore.
  • sean k
    sean k
    Is there any promise that "The Regime" has made that has held true?

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