Health Insurance in California Due to Rise 12.5% – Covered California to Slap Extra Surcharge on High End Plans – President Trump to the Rescue?

Posted by Tina

The California Health Insurance Exchange announced Wednesday that it has ordered insurers to add a 12.4% surcharge on silver-level health plans which will bring the increase in premiums on average to 25% in 2018 for those choosing silver plans. California is blaming Trump for the surcharge because he has yet to signal support for federal funding of certain portions of Obamacare:

Taxpayers, not consumers, will bear the brunt of the extra rate hike because federal premium assistance for policyholders, which is pegged to the cost of coverage, will also increase.

Statewide, rate increases will vary by insurer and region. What consumers pay depends on where they live, their income, what level of coverage they want and which insurer they choose.

Californians can get their first look at next year’s health plan prices and options on the state’s rate calculator, released Wednesday.

The state’s open enrollment period, which is longer than that for the federal exchange, runs from Nov. 1 to Jan. 31. About 1.4 million Californians buy their own coverage through the state marketplace and nearly 90% receive financial assistance that reduces what they pay.

90% get government subsdies!?!!! No wonder California’s lefty lawmakers are having fits!

But Californians will have another option soon. President Trump signed an executive order this morning allowing the purchase of insurance across state lines. The order also makes it possible for small businesses to join with others of like business, allowing them to purchase insurance as a group to get better rates.

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6 Responses to Health Insurance in California Due to Rise 12.5% – Covered California to Slap Extra Surcharge on High End Plans – President Trump to the Rescue?

  1. J. Soden says:

    Now folks can purchase healthcare across state lines. Thank you President Trump! And in addition . . .
    ttp://www.breitbart.com/news/trump-to-issue-stop-payment-order-on-health-care-subsidies/
    Let the shopping begin!!!!!

  2. Peggy says:

    Remember it was the health insurance companies that helped wright the ACA to guarantee that they would make a profit. What has become known is just how much more they would make.

    I’m glad Trump cut off their illegal subsidized funds and forced congress to approve or deny them.

    How much did the insurance companies and their CEOs because of ObamaCare is shocking and proves they don’t need any more of our money.

    Health insurance industry rakes in billions while blaming Obamacare for losses:

    “Major insurance companies are enjoying record profits but claim they are losing money under the Affordable Care Act

    Record profits
    But the claim that corporations are losing money on Obamacare ignores the record-breaking profits and compensation packages that health insurers continue to collect.

    Consider UnitedHealth, the nation’s largest health insurer that is leaving the marketplace next year. UnitedHealth claims that Obamacare has reduced its 2016 earnings by $850 million. While they might have $850 million less than they wanted, UntedHealth’s profits are still soaring.

    In fact, UnitedHealth announced record-breaking profits in 2015, followed by an even better year this year. In July 2016, UnitedHealth celebrated revenues that quarter totalling $46.5 billion, an increase of $10 billion since the same time last year. And company filings show that UnitedHealth’s CEO Stephen J. Hemsley made over $20 million in 2015. To be fair, that is a pay cut. The previous year, in 2014, Hemsley took home $66 million in compensation.

    “If you look at our Proxy, the Board lays out in extensive detail, in great detail, the thinking behind both CEO and executive compensation,” UnitedHealth executive Don Nathan tells ConsumerAffairs.

    “At his request, Mr. Hemsley’s total compensation is below the median for CEOs in the Company’s peer group,” the proxy statement says, “even though the Board believes his performance has been outstanding.”

    In other words, Hemsley is far from being the only health insurance CEO making millions of dollars every year.

    Sky-high profits
    Aetna, whose CEO Mark Bertolini reported to the Securities and Exchange Commission a $27.9 million compensation in 2015, has similarly celebrated sky-high profits. “In 2015, we reported annual operating revenue of over $60.3 billion, a record for the Company,” Aetna recently told investors.

    Aetna spokesman T.J. Crawford wrote a brief statement to ConsumerAffairs describing the company’s losses under Obamacare: “As updated on our Q3 earnings call last week, we now expect a 2016 pretax loss in our individual products (on- and off-exchange) of approximately $350 million,” he said via email, otherwise directing questions to a company press release.

    Thanks to the insurance industry’s combination of record profits in recent years and increasing premiums, people on both sides of the political aisle have criticized the Affordable Care Act as being more beneficial to the insurance industry than consumers, though politicians remain deeply divided on what a good, viable alternative would entail.”
    https://www.consumeraffairs.com/news/health-insurance-industry-rakes-in-billions-while-blaming-obamacare-for-losses-110116.html

  3. Libby says:

    Dream on.

    Though its my understanding that insurers have been anticipating Donald’s pernicious behavior, hence the rate hikes.

    There is always “Bronze”.

  4. Tina says:

    While Congress rings their tight little fists Trump is doing what he can to force competition and innovation in the marketplace…the only real hope we peons have of truly affordable insurance.

    • Libby says:

      Tina, you are so truly dim. If you had to pay, say, utility rates not subsidized by your urban brethren, you would be a very, very unhappy girl. The “free” market is good for some things … not for others. Health care, utilities and education come under “others”.

    • RHT447 says:

      Yes Tina, you are well and truly “dim”. A pity you can’t spend more time with the rest of us “dim bulbs” here in Texas shopping on the open market for electricity. My current plan costs $47 for the first 1000 Kwh, and $7 for each additional 1000 Kwh. Taxes and delivery add about $50 per month. My plan expires next month, at which time I will shop for another, possibly lower, rate. Yup, that open market competition is just soooo over rated. NOT.

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