The Dismantling of ObamaCare - Ongoing Updates.

[scagnt83]

How would selling across state lines lower costs?

I never said it would. And that wasnt the point of my comment or Paul Ryans comment.

"Increasing Regulatory Competition"

Its not about price, its about regulations. Its a way of forcing highly regulated states to de-regulate. And it could have much wider implications beyond just health insurance.

Look at the state of NY. Higher than average costs and lower than average product selection. They have just 2 or 3 LTCI options, 2 or 3 FIA options, 3 or 4 GUL options, etc. Compare that to other states that have 3x-10x the products. TONS of rich NYers who have summer homes, use that summer home address to purchase their financial products from.


Based on what he said, price is not the point, its regulations.

 

[Yagents]

This will help turn the tide:

http://www.modernhealthcare.com/art...0310-NEWS-170319992&utm_campaign=financedaily

Anthem backs GOP's Obamacare replacement
By Virgil Dickson | March 10, 2017
Major ACA marketplace player Anthem has come out in support of the Affordable Care Act replacement bill making its way through Congress, breaking rank with the insurance industry's largest lobbying organization

 

[junkman]

I like how articles keep saying "older, lower income people will be paying higher premiums ". They will not. They will drop coverage and do without and we'll be back to providing care thru the most expensive outlet we have.

That is the intent. At least we won't have to pay via taxes and Repubs can continue to blow smoke about fiscal conservatism.

It will be interesting to see how they pay for the wars also. I guess the reduced % taxes collected on the larger dollar war expenditures will make oodles of cash flow into the coffers.

 

[scagnt83]

Other than premium taxes, what state demographics and mandates impact life and annuities? Health insurance premiums are driven by health care costs and expected claims. There are definite geographic differences in health care costs from one state to the next and even within a state.

If NY or CA residents are allowed to buy health insurance from a lower cost state (pick one) then how long before residents along the coast can buy homeowners from a low cost inland state?

Its not about the premiums. Its about product design and availability. Product choices differ greatly in the LTC and Annuity world. They differ a good bit in life insurance too for states such as NY and CA.

NY agents would kill to be able to sell SC policies for Annuities/LTCI/Life.

I would make a killing if I could sell SC filed LTCI or Annuities in NY.

Its not just product selection either. Its features on the products. Less choices of Riders in highly regulated states. Want an Advanced Benefits or Chronic Illness Rider in CA?? You have just a few carriers who now finally offer them in CA. Other states its a standard feature.

Want LTCI in NY? You cant have 3 of the main players in the LTCI market.
Want an Indexed Annuity in NY? You have a choice of just 2 A Rated Carriers. Its 10+ in most all other states.


Unless they make the wording specific to "Qualified Health Plans", it will apply to LTCI, DI, CI, etc. And it would create a slippery slope for Life and Annuity sales to follow.

 

[bluemarlin08]

Its not about the premiums. Its about product design and availability.

I still can't see the logic behind buying a health policy in another state would be less expensive for similar benefits in state.

 

[scagnt83]

I still can't see the logic behind buying a health policy in another state would be less expensive for similar benefits in state.

Premiums and Regulations are very different things.

People in NY could care less if they have to pay more... they just want some decent products to choose from in the LTCI/Annuity/LIfe side of the biz.

But my greater point, is that listening to Paul Ryan on that subject, he seemed to be focused on decreasing regulations more than premiums.

 

[ARus]

The health insurance market will stabilize when underwriting is allowed, and not before.

Car insurance does not have 100% market penetration.

Nor does lending (mortgage, auto, credit cards, etc)

Yet these markets are stable.

Why?

UNDERWRITING.

Health insurance carriers made money before Obamacrap. Since then most have lost money and tons of it.

Group health plans have close to 100% participation but they also have some degree of underwriting.

Only the IFP market is screwed by DC that prohibits underwriting because they consider it discriminatory.

We will never see a robust IFP market as long as DC requires carriers to issue policies without asking health questions.

Are you serious! How you can compare something which is under your control in 80%, with something which almost is out from your control in 80%, and talk underwriting? Health is not money, house, car! This health system is in trouble exactly because is based too much on materialistic interests and ignores non measurable assets as health is one of them. Look at the world with better experience.

 

[somarco]

ARus it is quite clear you have no clue about the meaning of underwriting. And yes, I am quite serious, that health insurance premiums for the masses will not decline until medical underwriting is allowed.

Underwriting is risk assessment and evaluation.

 

[junkman]

ARus it is quite clear you have no clue about the meaning of underwriting. And yes, I am quite serious, that health insurance premiums for the masses will not decline until medical underwriting is allowed.

Underwriting is risk assessment and evaluation.

And risk assessment is,necessary when we are pricing on what is essentially a sample of the population. When we cover the population, underwriting is not necessary and rates are simply claims trended + an admin charge. That is how carriers manage their various blocks.

I've looked at group claims where the carrier said it was 100% credible. My calculations showed only a 35% r^2 looking at rolling 12 month experience. At 24 months r^2 jumped to 65% which is still significantly below 100%. Throw in a std deviation and the renewal justification becomes pure hocus-pocus for a 1,000 member group.

Back off and consider renewals from carrier perspective and you realize that the groups are each smaller samples of the larger block. Carriers manage to break even on claims and whatever direct expenses are associated with a group and keep the admin fee for overhead.

There are huge economies of scale and per-person admin charges are next to nothing. This is observed by looking at a completely self-funded case.

ACA has had horrible and unpredictable claim experience because of adverse selection. The 2 options are to prevent adverse selection either by underwriting or enrolling all. Carriers use underwriting as competition. The healthy jump on the most stringently underwritten plan they can get. Unfortunately, health while under some individual control isn't completely controllable.

One statistic said "only" 6% of the population are covered by individual health plans. Some of those can pass underwriting. Personal philosophy determines what you want to do with the 3% or so that can't. You could say "pinche it let them pay or do without ". Or you figure some other way - even if your only reason for doing so is the realization that you may be there someday. Time goes fast and all will get sick sometime.

I repeat, the Repubs have no intention of fixing any thing and are getting boxed in. Cancel and/or institute pre-ex and they will be heald accountable . They will simply let it die while pretending to do something and of course blame Obama.

Pinche Trump

 

[Justin Bilyj]

Found this on my social media rounds,

Repeal or Replace?