Daily Archives: June 23, 2013

Will young invincibles help Obamacare avoid ‘death spiral’?

Will Young People Jeopardize the Success of Obamacare? | Wall St. Cheat Sheet.

Of the 7 million people the Obama administration expects to enroll for coverage in 2014, officials say 2.7 million need to be young adults. (emphasis added)

The danger is the goal isn’t met? From the New Republic’s Jonathan Cohn?

“Health insurance needs lots of healthy people to sign up for coverage. Their premiums cover the big bills for the relatively small number of sick people. So if the exchanges don’t enroll enough young, healthy people, insurers will have to raise everyone’s premiums. In the worst case, this could create what actuaries call a ‘death spiral’: Rising premiums prompt people to drop out, causing premiums to increase even more.”

Obamacare needs young people that receive either no subsidy or a very small one for them to actually serve the purpose of providing a healthy rate base. It’s certainly an open question how enthusiastically these young invincibles will be to sign up for relatively high priced plans. I suspect most of them believe they are going to receive “free” coverage. Won’t they be surprised?


15 PPACA provisions that will take effect in 2014

15 PPACA provisions that will take effect in 2014 | LifeHealthPro.

  1. Health Insurance Nondiscrimination Requirements
  2. State Heatlh Insurance Exchanges
  3. State Health Insurance Exchagne Tax Subsidies
  4. Employer Mandate Tax Penaltites
  5. Individual Mandate Tax Penalty
  6. Automatic Enrollment
  7. Pre-existing Condition Exclusion Practices Eliminated
  8. Ninety-Day Maximum Waiting Period
  9. Cost_Sharing Limits
  10. Non Annual or Lifetime Limits (some limits may exist)
  11. Wellness Program Health Plan Discount
  12. Coverage for Those in Clinical Trials
  13. Employer Minimum Essential Coverage Reporting
  14. Large Employer Heatlh Information Reporting
  15. Medicaid Expansion (option on state by state basis)



Obamacare: Is a $2,000 deductible ‘affordable?’ – Jun. 13, 2013

Obamacare: Is a $2,000 deductible ‘affordable?’ – Jun. 13, 2013.

A California silver plan has the above benefits plus a $250 emergency room copay. Is that worth $321/mo? The article concludes…

“In many cases, depending on the plan, the coverage will be more comprehensive than what the enrollee currently has,” said Anne Gonzalez, a spokeswoman with Covered California, which is running the state’s exchange.

Of course key question, “Is it worth it?” is yet to be determined.