How is Obamacare Affecting You?
Late in the Fall each year, those who work at American colleges and universities are asked to sign up for healthcare benefits – health insurance, dental insurance, flexible spending accounts, and the like – for the following calendar year. At Hillsdale College, we are in the midst of sorting this out right now. The process is an interesting one – for in some particulars Obamacare is kicking in right now.
The response of our carrier – Blue Cross/Blue Shield (BCBS) – to the new mandates that will be operative next year was to raise our rates by 33%, which caused heartburn in the executive suites of the college.
For some time now, we have had high-deductible health insurance and health savings accounts. Through BCBS, we have been able to negotiate discounts on services. What we pay each month for insurance is modest, and for ordinary medical care we pay out of our own pockets with the money withdrawn from our paychecks and deposited in the health savings accounts. Overall, this reduces expenses. One is less apt to spend one’s own money than someone else’s money on office visits, procedures, and medicine for which one has no genuine need.
BCBS made money serving us last year, but they were initially adamant about the rate increase. So, with the help of a consultant, the college managed to find another provider – Priority Health – willing to provide us with insurance along the same lines at little more than what BCBS charged us last year. For now, we are doing all right.
The future is, however, uncertain. My sense is that Obamacare was designed to fail. It mandates an increase in benefits and calls for a decrease in costs. It does nothing to promote competition, and it leaves us with fifty discrete, segregated insurance markets operating under the jurisdiction of the states. Its aim, if I read the tea leaves correctly, is to create a crisis and open the way for a single-payer system on the British or Canadian model.
I am curious regarding its effects in different locales. How are the changes affecting you – so far?
- Comment (7)
- · Quote
- · UnfollowFollow (1)
Comments:
Re: How is Obamacare Affecting You?
My situation is very similar to yours, Professor. I have a high deductible plan connected to an HSA through Anthem Blue Cross. Beginning Jan 1, my premiums will increase by 22%. Back in October I called my insurance company to try to adjust the deductible and was told that it would be incredibly foolish to do so because of the adverse effects that such a move would have on my premiums. When I inquired why that would be the case, I was told that the president's new legislation would force the company to charge higher premiums on all new plans since they were going to have to begin covering folks with pre-existing conditions.
For me, Obamacare has meant less choice and higher premiums.
Aug '10
Re: How is Obamacare Affecting You?
I have a relatively low deductible plan through Anthem and its premiums increased by an insane amount last year from $793 a month to $1,031. I was forced to change to a slightly higher deductible account before March 1st or I would have had to deal with additional increases coming this year.
Feb '10
Re: How is Obamacare Affecting You?
Get a high-deductible plan and a Health Savings Account-- while you still can. I've done mine through http://www.health--savings--accounts.com. Yes, the link (and the site itself) look tacky, but behind it is a small business owner who works very hard to get you the best in health insurance, and also gives great tips on staying healthy in the first place.
My high-deductible health insurance plan, which is with BCBS, only kicks in after about $4000 per year. But the premium is less than $300 per month for me and my kids, so I can sock away $400 per month in a health savings account, which will cover at least the first $4000 deductible per year. Plus, if I don't use it, I keep the money, growing tax-free, for future health expenses.
Edited on December 14, 2010 at 6:54pmAug '10
Re: How is Obamacare Affecting You?
The big additive to our premium is maternity. Without maternity, our insurance would be much less.
Jul '10
Re: How is Obamacare Affecting You?
The family premium went up 40% last Christmas and I expect the January invoice will bring another fine surprise. My family doctor will likely be in another line of work in two years if ObamaCare is not thwarted, but is still providing top service on a rapidly diminishing income. Insurance companies appear to be squeezing in both directions just as hard as they can.
They stopped issuing new policies in October. The other possibility is that they just shutdown on New Years. I haven't seen that January invoice yet.
Edited on December 15, 2010 at 1:47amJun '10
Re: How is Obamacare Affecting You?
I see the same rate increases as others do. According to my friends who are pro-Obamacare, they just say that the rotten, stinking insurance companies were going to raise rates anyway, so blaming it on the new legislation is an insulting red herring. I look forward to when they finally see the light.
May '10
Re: How is Obamacare Affecting You?
Since the insurance companies are making "obscene" profits and they are publicly traded companies (e.g., WLP) one would logically expect their stock prices to be skyrocketing. As far as I can tell, they've been about flat for five years. Am I wrong?