BY ROBERT LASZEWSKI – Why Are The 2016 Obamacare Rate Increases So Large?
Instead of moderate rate increases for one more year, the big rate increases have begun.
Texas Blue Cross stands out. The health plan commented in its federal government rate filings that it covered 730,833 Obamacare individuals in 2014 with premium of $2.1 billion and claims totaling $2.5 billion––for a medical loss ratio of 119%. The plan further commented that, after the “3Rs” reinsurance adjustments, they lost 17% to 20% of premium in 2014–that would be about $400 million. And, they are only asking for a 20% rate increase.
As they say, read the whole thing.
The overriding issue is the healthy aren’t signing up. The sick people will sign up, however, for Obamacare to be actuarily sound requires the healthy to enroll. So far, it ain’t happening.