Tue
Nov 18 2014
10:58 am

Just got a notice from BlueCross that our insurance premiums are increasing 22.6% for 2015. From checking a few other plans, it appears to be a similar increase across the board.

Knoxoasis's picture

Any idea why such a large

Any idea why such a large increase?

R. Neal's picture

Tennessean: BlueCross

Tennessean: BlueCross requests rate increase of 19 percent in 2015

"Based on our claims experience through the first half of this year, we're paying out more than we expected," he said. "In fact, we're in a loss position that will be in the tens of millions of dollars."

That loss is, in part, due to the fact that more patients who signed up for health care on the exchange were sicker than insurance companies had expected. They tended to use more health services than the company predicted they would, too. According to BlueCross, the relative poor health of patients accounts for about half of the proposed rate increase — increases in the cost of medical care account for much of the remaining increase.

Andy Axel's picture

In related news

the "Knoxviews lost federal dollars" ticker is about to cross the $2B mark.

R. Neal's picture

See also

Nashville Post: BlueCross requesting 19% premium hike for '15 federal marketplace

A number of market factors could cause higher than average price increases on a state-by-state basis. Though Tennessee had some of the lowest premiums in the country from BlueCross in the first year of the marketplace, the state's sicker-than-average population and lack of competition among insurers could drive up premiums.

"Overall in Tennessee, fewer younger, healthier people signed up to balance the risk pool for marketplace plans," said Roy Vaughn, vice president of corporate communications for BlueCross. "Those people who did enroll were less healthy than expected. Our claims experience is indicating that the amount of medical care required for them has been considerably more than we projected."

Mike Knapp's picture

This has

Monty Python written all over it

R. Neal's picture

Just checked, our premiums

Just checked, our premiums have gone up 130% since 2007.

We had a group plan under the business until this year, now we have an individual/family plan. Don't think that makes much difference, though, because the group plan premiums were steadily increasing as well.

Tamara Shepherd's picture

*

Also, see jbr's thread entitled "Nearly one in 30 children every year experiences homelessness."

In comments there you'll note another dire stat I spotted in that report, namely that Tennessee ranks 50th in the nation for "child well-being," for which criteria being measured include health.

Granddaughter's picture

Our small business had a 2% increase

We had 3 of 4 employees participating in our small business plan with United Healthcare. The proposed increase was 21%. We hired a 29 y-o male and when he elected to participate in the health coverage, the increase dropped to 2%.

Up Goose Creek's picture

Community Health alliance

I'm finding the CHA to be very competitive this year- quite the opposite of last year.

For just about the same price as my $3500 Deductable, $3500 out of pocket, co-pay NA plan I am looking at a $2000 deductible, $4,000 OoP, 20% co pay plan. Which seems to be a better plan unless you get very sick.

Not sure how it compares if I get sick out of state, I need to research this.

Brian A.'s picture

And supposedly the rate of

And supposedly the rate of growth in overall healthcare costs is the lowest it has been in years.

Mike Knapp's picture

What's the problem?

WLP $129.1973 0.1573 0.12% 11/18/2014 16:55 | After Hours

WLP Key Statistics

Financial Highlights
Fiscal Year
Fiscal Year Ends: Dec 31
Most Recent Quarter (mrq): Sep 30, 2014
Profitability
Profit Margin (ttm): 3.04%
Operating Margin (ttm): 6.31%
Management Effectiveness
Return on Assets (ttm): 4.70%
Return on Equity (ttm): 9.62%

michael kaplan's picture

related

from bernie sanders:

Staggering increases in prices for many generic drugs were examined on Thursday at a Senate hearing that Bernie chaired. Three pharmaceutical companies were invited to testify but refused. Generic drugs – copies of drugs no longer protected by patents – historically have cost much less than brand-name prescription medicines. “If generic drug prices continue to rise at the rates that we are seeing, millions of Americans may not be able to afford the medicines they desperately need. Drug companies have seen the opportunity to make a whole lot of money and they are seizing that opportunity,” Bernie told The Associated Press.

michael kaplan's picture

right. i was just prescribed

right. i was just prescribed a month supply of medication made in israel that cost me a mere $140. (the same drug was available via canada for $75.) as this was a tier 3 drug, medicare D covered nothing (thank you, george w). yet my D premium went up around 40% this year.

btw, the generic of above was even more expensive.

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