This is news? If this is news to CNN, they need to remove the middle ‘N’ from their name and just go by Cable Network. If we let the “water go under the bridge” that CNN is just discovering that Obamacare will have higher premiums, they have actually done some decent reporting. The question that comes to mind is why didn’t they do this a long time ago? If anyone at CNN is objectively covering the health care industry, you simply do NOT need Kathleen Sebelius to spoon feed this headline to you.
I find it interesting into how much detail Wolf Blitzer goes into to make sure the information is factual while interviewing Louise Radnofsky.
Regarding the cost of insurance, Sebelius remarks:
These folks will be moving into a really fully insured product for the first time, and so there may be a higher cost associated with getting into that market.
What is a “fully insured product”? For purchasers of individual plans, it’s a bronze, silver, gold or platinum plan offered through their state’s insurance exchange. Period. If your income is above 133% of the poverty level and you wish to avoid a penalty that is your choice.
It doesn’t matter if:
- You never get sick
- You have assets available or money saved to pay bills in your bank or health savings account
- You wish to keep your permiums low by having a $10,000 deductible
As an insurance broker, I talk with people everyday that their crystal ball has a very clear view of the future, sometimes it turns out their crystal balls are wrong. To some extent Ms. Sebelius has a point that they will have more complete coverage, BUT I would not phrase it as a “fully insured product for the first time”.
Let me give you a personal example. Out of the blue, our very health 14 year old daughter contracted an autoimmune disease. The end result was multiple stays at Chldren’s Hospital in Denver and easily over $200,000 in medical expenses. By Sebelius’s definition, our insurance is not a “fully insured product”. I disagree. The insurance company paid every penny I expected. That did mean we had to meet our deductible and satisfy our coinsurance but after that, 100% was covered. Need a prescription? $0. Doctors visit? $0. Emergency room? $0. Now I paid a lot of $$$’s to get to that point but that’s the policy I purchased.
You may need the government to decide what policy you should purchase, but that doesn’t mean that all of us do.