How Obamacare fixed the health care market

[Landslide Lyndon]

I wonder what Torie thinks about this. Maybe the "socialists" were right for once.

http://krugman.blogs.nytimes.com/2013/09/05/it-takes-a-government-to-make-a-market/?_r=2&

Lots of reporting on the new Kaiser Family Foundation analysis of what we know so far (pdf) about premiums under Obamacare. It definitely looks as if there will be a mild “rate shock” — in the right direction. KFF:

    While premiums will vary significantly across the country, they are generally lower than expected.

What’s going on here? Partly it’s a vindication of the idea that you can make health insurance broadly affordable if you ban discrimination based on preexiting conditions while inducing healthy individuals to enter the risk pool through a combination of penalties and subsidies. But there’s an additional factor, that even supporters of the Affordable Care Act mostly missed: the extent to which, for the first time, the Act is creating a truly functioning market in nongroup insurance.

Until now there has been sort of a market — but one that, as Kenneth Arrow pointed out half a century ago, is riddled with problems. It was very hard for individuals to figure out what they were buying — what would be covered, and would the policies let them down? Price and quality comparisons were near-impossible. Under these conditions the magic of the marketplace couldn’t work — there really wasn’t a proper market. And insurers competed with each other mainly by trying to avoid covering people who really needed insurance, and finding excuses to drop coverage when people got sick.

With the ACA, however, insurers operate under clear ground rules, with clearly defined grades of plan and discrimination banned. The result, suddenly, is that we have real market competition.

[barfbag]

Keep dreaming.

[Small Business Owner of Any Repute]

I'm very excited for Jan. 1, 2014 when I'll finally be able to afford my own health care coverage here in Cali, and I'm ready to hit the exchange when it opens next month. I know Torie probably thinks I'm a sucker for buying insurance since I'm a healthy young.

[barfbag]

I'm very excited for Jan. 1, 2014 when I'll finally be able to afford my own health care coverage here in Cali, and I'm ready to hit the exchange when it opens next month. I know Torie probably thinks I'm a sucker for buying insurance since I'm a healthy young.

Having insurance is always a good thing. If people weren't denied for pre-existing conditions, then more people would buy and prices would drop. It's also good to allow people to remain on their parents' insurance for a few years. What we need now is to allow people to purchase across state lines and limit frivolous law suits.

[badgate]

Hopefully someone with more knowledge can answer this: Is Obamacare the kind of thing that needs to be reauthorized?

[barfbag]

Hopefully someone with more knowledge can answer this: Is Obamacare the kind of thing that needs to be reauthorized?

No it doesn't unless parts are repealed by the next Republican administration. In this case, the repealed parts would have to be voted on again but not reauthorized.

[7,052,770]

Having insurance is always a good thing. If people weren't denied for pre-existing conditions, then more people would buy and prices would drop.

Sorry, but that is just 100% false.  Bringing on the people with pre-existing conditions is the primary reason why prices are going up (not by nearly as much as Republicans say, but up nonetheless) under Obamacare.  It's simply inescapable.

[barfbag]

Having insurance is always a good thing. If people weren't denied for pre-existing conditions, then more people would buy and prices would drop.

Sorry, but that is just 100% false.  Bringing on the people with pre-existing conditions is the primary reason why prices are going up (not by nearly as much as Republicans say, but up nonetheless) under Obamacare.  It's simply inescapable.

There is something to be said for this. If people with conditions are insured, then costs will go up because people will be using the services more.

[Ban my account ffs!]

Minnesota unveiled more information regarding plans for employers as well as more pricing info on individuals.

Medical Assistance (Medicaid) will cover individuals up to 133% of the federal poverty line and pregnant women and children with family incomes up to 275% of the FPL.

MinnesotaCare will cover individuals between 133-200% of the federal poverty line with a sliding scale of monthly premiums maxing out at $50/month at the 200% level.

Beyond that, tax credits are available to those between 200-400% of the FPL.

In my area of the state, a healthy 40 year old that buys a platinum plan, which covers 90% of medical costs, would cost $202/month with no subsidies.

That is a 40 year old living alone with an income of $45,000 and above. 

A silver plan which covers 70% of medical costs and would cost $162/month.

For a family of 4:

Up to $31,000
All covered by Medical Assistance (Medicaid)

$31,000-$47,000
Children covered by MA, parents covered by MinnesotaCare with sliding premiums from $42-$100/month for the parents' coverage.

$47,000-$62,000
Children covered by MA, parents covered by private insurance with tax credits.  Total cost for insuring family is $362/month.

$62,000-$94,000
Family covered by private plans with tax credits.  Monthly premium for whole family ranging $563-$626.

Above $94,000--- $626/month.

[Brittain33]

Another article on Obamacare and Republican opposition.

http://nyti.ms/1aWZSsn

[7,052,770]

Another article on Obamacare and Republican opposition.

http://nyti.ms/1aWZSsn

Damn, that article was great.

[Small Business Owner of Any Repute]

Just did the research on the California exchange. It looks like I can get the "gold" level plan for about $250 before any kind of subsidy. That's less than I paid in Massachusetts for a "silver" level plan. GG Obamacare.

[barfbag]

Just did the research on the California exchange. It looks like I can get the "gold" level plan for about $250 before any kind of subsidy. That's less than I paid in Massachusetts for a "silver" level plan. GG Obamacare.

And you want the government to tell the health insurance industry that they can only charge so much for different plans? That's like telling a hotel they can only charge $100 a night for a $400 room. Eventually they'll go out of business and we'll be stuck with a bad health care system like Botswana, Massachusetts, and Zimbabwe.