Is Lon Johnson grateful for even more expensive health insurance?
It’s no secret the Affordable Care Act has had a really tough time living up to its name. Every few months insurers warn about rate increases and this month is no different. Now health insurers in Michigan will have to hike premium rates by nearly 20 percent. That means over 300,000 Michiganders will be paying more for their health care next year.
MI-01 candidate Lon Johnson has gushed about Obamacare, proclaiming how grateful he is for President Obama and Nancy Pelosi for passing the legislation. So now that Michiganders will be the ones directly hit by this disastrous law, is Lon ready to gush about it on the campaign trail?
NRCC Comment: “Lon Johnson has never kept secret his love for Obamacare and has even said he’s grateful that President Obama and Nancy Pelosi passed the disastrous law. Now that it’s clear hardworking Michiganders will be directly hurt by premium rate hikes caused by Obamacare, is Lon Johnson still thrilled to be supporting the health care law?” –NRCC Spokesman Chris Pack
Michigan insurers seek big hikes for Obamacare plans
Detroit Free Press
JC Reindl
July 8, 2016
http://www.freep.com/story/money/business/michigan/2016/07/08/insurers-seek-big-price-hikes-obamacare-policies/86875274/
BCBS of Michigan is seeking to boost its premium rates by an average 18.7% for individual plans
Health insurers in Michigan are seeking another round of double-digit rate increases next year for plans they sell to individuals, although smaller increases for their small group plans.
Insurance giant Blue Cross Blue Shield of Michigan has asked state regulators for permission to boost its premium rates by an average 18.7% for individual plans, along with a 14.8% increase for its Blue Care Network individual plans. Those plans — closely associated with the Affordable Care Act, commonly referred to as Obamacare — cover about 200,000 individuals in the state, down from 310,000 people as recently as a year ago.
And the next most popular insurer in Michigan’s individual market, Grand Rapids-based Priority Health, is requesting an average 13.9% rate increase that would affect just over 113,100 individuals.
Insurance companies nationwide are proposing similarly big rate hikes amid reports of heavy financial losses in their individual insurance plans. Individual market plans are those that people buy on their own, typically through the healthcare.gov website.
Industry experts have attributed the insurers’ losses in recent years to high drug costs and having to cover people with expensive pre-existing conditions, among other factors.
To be sure, the new proposed rates do not reflect what many individuals would actually have to pay in 2017. Most Michiganders who buy health insurance on the individual market qualify for tax credit subsidies through the Affordable Care Act intended to make the policies affordable.
The subsidies are based on a percentage of an individual’s income and family size. That means if the sticker price of one’s insurance premium goes up, so will his or her government subsidy.
The Michigan Department of Insurance and Financial Services released its annual list of the insurance companies’ proposed rate increases late Friday afternoon. The department is responsible for reviewing, scrutinizing and approving the rate changes and is accepting public comment through July 31. The open enrollment period for the individual market is set to begin Nov. 1 this year.
Last year, the department approved an average rate increase of 6.5% for individual market plans in the state, although some insurers received approvals for 10% or higher increases. Every insurance company ultimately received the exact rate increase that it requested.
Insurers are requesting smaller rate increases for the small group policies that are purchased by businesses with fewer than 51 employees. Market leader Blue Cross is seeking an average 2.6% increase and its Blue Care Network is seeking a 3.6% increase.
The average approved increase last year was 1% in Michigan’s small group market.
Asked for a comment on the rate request, Blue Cross spokesman Andy Hetzel said: “Our pricing is affected by the same forces seen elsewhere in the country. We continue to see people dropping coverage after signing up, younger people staying uninsured by choice, and specialty drug costs weighing on premiums.
“Unlike other parts of the country, we have robust competition here in Michigan, with multiple insurers participating. This is good for consumers.”
The public can comment on the proposed rate increases by emailingHealthRateComments@michigan.gov through July 31.
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