News on Obamacare cannot possibly come at a better time for the Trump campaign.
The Obamacare exchanges in Minnesota are near collapse.
The state’s insurance regulator says Minnesota health-care is in an “emergency situation” and calls the average 60% hike a “stopgap for 2017”.
Please consider Near ‘Collapse,’ Minnesota to Raise Obamacare Rates by Half.
Minnesota will let the health insurers in its Obamacare market raise rates by at least 50 percent next year, after the individual market there came to the brink of collapse, the state’s commerce commissioner said Friday.
The increases range from 50 percent to 67 percent, Commissioner Mike Rothman’s office said in a statement. Rothman, who regulates the state’s insurers, is an appointee under Governor Mark Dayton, a Democrat. The rate hike follows increases for this year of 14 percent to 49 percent.
“It’s in an emergency situation — we worked hard and avoided a collapse.” Rothman said in a telephone interview. “It’s a stopgap for 2017.”
On average, rates in the state will rise by about 60 percent, said Shane Delaney, a spokesman for MNSure, the state’s marketplace for Obamacare plans. About 250,000 people, or 5 percent of the state’s population, were covered under plans bought on the individual market, including plans bought on the Affordable Care Act markets as well as outside it.
Lie of the Day
The lie of the day comes from Jonathan Gold, a spokesman for the U.S. Department of Health and Human Services.
Minnesotans would still have affordable options for coverage next year said Gold. “Headline rate changes do not reflect what these consumers actually pay because tax credits reduce the cost of coverage below the sticker price.”
Of the about 70,000 people who had insurance on the Obamacare markets this year, 63 percent got subsidies last year, according to the commissioner’s office.
For at least 37% of Minnesotans Obamacare is hugely unaffordable. For those who got small subsidies, Obamacare is hugely unaffordable. We do not have breakdowns by subsidy amount, but I suspect at lest 65% do not feel Obamcare is affordable.
Those nearly broke with massive subsidies may view Obamacare as “affordable”. Businesses sure don’t and neither do those who get little or no subsidies.
Also in the not-affordable class are millions of healthy millennials who have to dramatically overpay so that a small subset of people benefit mightily.
Government in Action
Mike “Mish” Shedlock
The primary goal of ACA was never to reduce over-all healthcare costs. It’s goal was to increase the percentage of Americans with health care insurance. It has actually been wildly successful in doing this through the use of government subsidies.
There was a lot of talk about how ACA might reduce over-all costs, but that was never the primary goal.
Unfortunately, no politicians want to take on the health-care industrial complex to actually introduce real competition.
If you like your lie, you can keep it.
It was not “wildly successful” even at at. The biggest increase was in Medicaid expansion.
Mish, don’t forget that quite a few jumped ship and left the private market completely in favor of health sharing sites that control costs much much more effectively. I pay 450 a month for a family of 5 with a 3k deductible (we never go to the doctor, like ever). If I signed up for the ACA, I’d pay more than that for worse coverage.
“It has actually been wildly successful in doing this through the use of government subsidies.”
Completely false. Some 5+ million previously un-insured were pulled into coverage per ACA… but 3x that number have dropped coverage & pay the penalty + HSA, etc.
Yes, some previously uncovered folks are now covered… at the cost of millions more being forced out due to 1) costs & 2) removal of cheap catastrophic plans.
ACA is a failure on all fronts. Don’t kid yourself.
Gruber should be arrested for fraud.
The problem with your stated goal is that no one was clamoring for health insurance. They wanted affordable healthcare. Government keeps touting the wonderful accomplishments of the ACA and meanwhile healthcare is less affordable now than when the ACA was passed. Premiums went up dramatically and out of pocket costs went up dramatically. Most of that cost hitting the poor and middle class the very people this was purported to help. No one should be calling this a success.
The healthcare-industrial complex helped WRITE this POS that nobody read. Politicians are not afraid to take on big business or big labor, they are in bed with them. None of these people are for competition or price discovery or anything that helps the public in general, they’re in it for themselves. They’re all crony capitalists now.
“They’re all crony capitalists now.”
Cronyism is not capitalism.
That’s unfortunate, if true. Maybe it should have been called the Expanded Health Care Act (EHCA), or the Insurance for the Uninsurable Act (IUA).
Michael, the problem is that it was sold to the American people. A very small percentage of the population would have been in favor of the ACA had the cost been properly identified. Don’t forget Jonathan Gruber, the architect of the plan, “the stupidity of the American voter”
Is Mish getting back on the bandwagon? Some of us never gave up and are working very hard to get out the Trump vote to change things.
Trump won’t do a damn thing about this and you are beyond delusional if you think he will.
Well, at least he won’t EXPAND IT like HRC wants.
Along with geoengineering, vaccines, fluoridation, GMOs, etc, Obamacare was always about control of the government over the citizen, and principally incremental genocide of the US populace and financial destruction of the middle class. If no one except the 1% can afford health care, few will seek it; therefore more will die unnecessarily. If the Dems are in control, the next logical step (pre-planned of course) will be Single Payer with TOTAL control over your health care and naturally the Death Panels which will decide if you get the care you require. Since these death panels will affect the elderly the most, they will have the added benefit of keeping social security solvent for a few more years
Old people have nothing better to do than vote. That’s why no successful politician has ever done anything against the elderly.
I love it. A 60% hike is a ‘stop gap’. Here’s the real democrat plan for healthcare: don’t get sick. But if you do, go ahead & die.
I have no idea of the actual cost in dollars. Is it in hundreds, thousands or tens of thousands a year. An increase in % doesn’t tell me much. It’s like in a shop when they advertise discounts. I don’t buy percentages, I pay real money.
For many in that predicament, it means cutting into other neccessities. Just wait till the income tax penalties rise again
… it will really suck.
Well – how much did your costs go up?
Mish,
I have had my own health insurance for 20 years. I had a good stable PPO that covered everything. In 2012 I paid $230 a month and had a deductible of $3000 with 100% paid after, in 2017, the same plan costs $705 with a $7100 deductible.
Obamacare was designed to fail. In that view, it’s a success.
Kamala
Jump onto the welfare train, it’s the easy solution. Lol.
The more people do that, and hence the quicker the entire charade burns to the ground, along with all and everything in it, the better.
Employer provided health plans have also been deteriorating in costs and coverage.
Why has Trump not kicked any of the obvious tires?
Here in Arizona we are seeing 100% rate hikes, and I believe that something like 250,000 are insured. I can’t understand (and that’s really not tongue in cheek) who lame-stream media can say it is already baked into the election and won’t have an effect.
I’m loving it. Trump is surging in the polls along with gold and gold stocks. With Trump’s election the US and the global economy will enter a brutal depression. The US will descend into anarchy and civil war followed by martial law and a military dictatorship. My investments will skyrocket. I am up close to a hundred grand just today and yesterday – vote Trump! Make me rich!!!!!
Anarchy is always and everywhere something one ascends into. Holding on to that Shining City on the Hill, is where most people fail.
If your prediction comes true, you won’t be able to enjoy your gold after someone shoots you and takes it.
And those outside of Obamacare and its subsidies will ALSO see double digit increases. It did NOT fix COST!!!
TIm, I commented above, will comment here. The best answer to fix the Health Care mess is to go 100 percent private. That’s the cheapest way to get health care. Kick the government out of it. Health sharing sites are exploding right now. They aren’t technically insurance, but function exactly like insurance. Costs are less than half what government tinkered health insurance cost using a health insurance site. You cannot find rates that cheap on the market today outside the government tinkered insurance plans. I’d like to see more health sharing sites start as the current ones are usually related to faith. However, I’m convinced that the first person who expands a health sharing plan to include non members of the particular faith will become a very successful individual. It works. Government run stuff doesn’t.
How are the subsidies paid for? And who is on the receiving end of the 60% increase?
Biggest individual losers are self employed, not on Medicare
Employers of more the 30 (or is it 50) also take a huge hit
“Biggest individual losers are self employed…”
Self-employed are also the biggest losers per the income tax code. And if someone miraculously grows their start-up to a viable level, then payroll taxes disproportionally punish them for that growth/success, as well.
Start-ups/small biz are getting crushed in the US – this country is no longer “the place to start a business”… quite the opposite.
Reforming the tax/cost environment for small business is my biggest hope/desire from a Trump administration.
The goal of all government, is to take from those least dependent on them, and deliver handouts to those most so. The latter being perfectly capable of getting by on their own, while the latter owe their social position solely to government. Hence financialization, regulation, bureaucratization and politicization, shifting all wealth and influence from those who earned it by productive output, to those who obtained it by government fiat and preference.
“News on Obamacare cannot possibly come at a better time for the Trump campaign.”
Ah, now you’re seeing the light.
Trump’s stump speeches have been POUNDING on this.
1. Trump has no chance in Minnesota.
2. The “stopgap” is to give Minnesota a chance to implement single payer as early as 2018, as the Governor has indicated.
single payer in a state like MN is doomed… it will never work on that scale w/ MN demographics. That’s a fact.
if MN pols are selling SP as a “fix”, then they should be strung-up from a lamppost… it’s a bait-and-switch that will crush MN fiscally.
If SP in MN looks likely, then everyone under the age of 35 should get the hell out of MN, asap.
This is not about Trump in MN
This is about another Obamacare disaster in national news
Unless the subsidies rise 60% for the “highly subsidized”, they too are going to get slammed and see a huge increase year over year. Additionally, the 60% increase is in the “premium rates”. The co-pay and deductible increases are not represented in these rates. Nor the shrinking pool of doctors, clinics and hospitals willing to accept the payment levels of these plans pay.
Obamacare goal achieved. Total system failure.
Higher subsidies = higher fedgov deficits
And spot on the co-pay and deductible (increases) – insurance useless if you can’t afford either.
I now know the outcome of the US Presidential race
On the 1st November the Melbourne Cup, the horse race with the biggest prize money in the world for a handicap race, was run.
As an ardent Trump supporter I backed Big Orange (Donald). I also drew Rose of Virginia (Hillary) in our sweepstake.
Below are the expert opinions prior to the race.
1 – Big Orange: Doing well in overseas group 2 events since running fifth in last year’s Melbourne Cup. A front runner, but he dawdled, albeit from a wide gate. Being a six-year-old, the gelding should be primed and won the Goodwood Cup last start. If the race was run in Europe, keen judges there figure he would be favourite. A chance but I’m not so enthusiastic.
24 – Rose Of Virginia: Second in the Auckland Cup over the 3200 metres in March but her recent Australian efforts are below a standard that entitles her to be odds to be under $100. Being a seven-year-old the mare is obviously past the stage of improvement.
Big Orange (Donald) beat Rose of Virginia (Hillary) well and truly, her coming in last, 99 lengths behind the second last horse.
As a consolation, because I had Hillary, sorry, Rose of Virginia in the sweepstake, I won $100 because she was last.
I am thinking of sending the money to Qatar to help fund Hillary’s retirement.
C’mon, get serious! All the right-leaning sites are yapping about increased costs for Obamacare/ACA but I am at a loss as to why. I think it is the authors and people reading these sites don’t understand anything about healthcare in the USA.
The ACA ONLY covers UNDER 7% of the healthcare marketplace in the USA. Read that again – UNDER 7%! And 84% of the people getting ACA coverage get subsidies and tax credits, meaning most will face no increase. Sheeze.
Don’t believe me. Here’s an article that I drew this information from.
—————-
Most Americans won’t be affected by Obamacare premium increase
Alexa Renee, KXTV 11:36 PM. PDT
October 25, 2016
Health care may pinch a little more out of your wallet in 2017- but it likely won’t be a problem for the majority of Americans.
Obamacare health plan premiums are expected to increase by 22 percent on average, according a U.S. Department of Human Health and Services (HHS) report released Monday.
The report also found a decrease in insurance issuers from 298 in 2016, to 228 in 2017, making it a less competitive market.
But for many, the price hikes will be relieved by federal subsidies, since 84 percent of Obamacare purchases receive financial aid, according to the report.
The marketplace also offers tax credits for majority of people who enroll in Obamacare, which also helps cover premium costs so many under the Affordable Health Care Act (ACA) will see minimal rate increases.
Who should be worried about a premium increase?
It’s important to note, only a small percentage of Americans use health insurance plans provided by the 2010 ACA.
HHS states, 20 million people have enrolled in Obamacare since 2010, but there are about 319 million people in the U.S.
This means, less than seven percent of Americans use Obamacare. The rest of the U.S. population is covered by their employer, Medicaid or Medi-Cal or by the U.S. Department of Veteran Affairs.
The HHS report encourages those who could be looking at price increases, to shop around for a new plan for 2017. The average premium in 2017 is expected to be about $28 less on average after tax credits, than in 2016 – a 20 percent reduction. Staying on the same plan could mean an increase in price.
….
http://www.abc10.com/news/local/california/how-many-americans-are-affected-by-obamacare-price-hikes/341809982
p.s. How come I don’t get email notification of replies to my comments???
“This means, less than seven percent of Americans use Obamacare. The rest of the U.S. population is covered by their employer, Medicaid or Medi-Cal or by the U.S. Department of Veteran Affairs.”
Not really. There are quite a few who aren’t covered by any of those. They do not have Obamacare, nor are they covered by their employer, Medicaid or Medi-Cal.
Some, like myself, are self employed, do not qualify for Medicaid and certainly have no employer coverage. We choose to either remain uninsured or go on the Health sharing site, which isn’t technically insurance for far less than we would pay for Obamacare. You left out over 40 million Americans who don’t have insurance, or get it through non traditional means. That is a not insignificant number.
Thinking Americans clearly predicted Obamacare’s future in March, 2010 when Obama signed the Affordable Care Act bill and putting it into motion. The future has now arrived.
All of us were right.
As I recall the majority of Americans opposed Obamacare at that time. All of us remember those famous words ” “we have to pass the bill so that you can find out what is in it”. This only goes to show how incompetent the people are who are in the driver’s seat and taking us on a ride to the cliff’s edge.
Looking back, based on all we know about the quality of American leadership in the last 25 years on critical matters that greatly impact our lives (healthcare, economy, foreign intervention, immigration, budget management, offshoring of jobs, etc…) it’s really beyond me how any American who has 2 working brain cells could still have any faith or confidence remaining in the competence of our government officials.
It’s so blatantly obvious that they’re taking us for a ride right off the edge of the cliff.
And it’s not inadvertent. It can’t be. Too many moving parts working in sync simultaneously for it to be mere coincidence. It’s intentional.
The superpowers are being dismantled.
i think LFOldtimer is confusing the ACA with TPP
DCMCM – what you’re missing is that it’s all part of the same package. It’s all part of the same crap sandwich that’s being forced down American throats.
So you think consumer hikes of 50-60% for medical care is normal?
Obamacare is on life support. You might as well acknowledge it. It’s not too late to join the rest of us who saw this train wreck coming back in 2010.
Now go and read the article I posted a few above this reply, so you understand what the real story is. Consumers are NOT facing hikes of 50-60% in healthcare but if any are, it has nothing to do with the ACA.
So adding illegal aliens/indigents to the Medicaid rolls to give them free medical treatment compliment of the American consumers has no impact on our premiums or deductibles?
In many states you can own a million dollar home and get free Medicaid coverage as long as you keep your income under a certain threshold.
That was a direct result of Obamacare.
That doesn’t have a adverse impact on rates for the paying consumer?
Stop it.
You are wrong. I have a grandfathered plan outside of Obamacare and my premiums tripled in the last 5.5 years and I have yet to get my Jan 1. 2017 rate but as I am in Maryland I expect at least 30% more. Which if you are good at math means I am at 390% of where I was before Obamacare was passed. I am a self employed CPA who prepares tax returns for small business. They buy the group policies outside of Obamacare. Their rates, deductibles, copays etc have massively increased since ACA started as well. They have switch to managed HMO plans with limited doctors and still have had massive rate increases.
Whatever happened to your healthcare costs has nothing to do with Obamacare. They are two separate and independent entities. Maybe you need to move to a state with a better insurance regulator who won’t allow costs to increase so much.
Don’t be dense.
Private insurers have been losing $$ offering plans thru ACA (and why many states are seeing insurers pulling out). And no doubt try to offset by raising rates on private plans .. and/or higher deductible/co-pay.
…
“UnitedHealth expects to lose $850 million on Obamacare in 2016, while Aetna, Anthem, and Humana are all on track to lose at least $300 million each on their ACA plans this year, according to company reports and estimates from Bloomberg Intelligence. UnitedHealth says it’s quitting 31 of the 34 states where it sells ACA policies. Humana is exiting 8 of 19 states and reducing its presence to just 156 counties, from 1,351 a year ago. Anthem hasn’t announced plans to change its participation in the program.
On Aug. 15, Aetna said it will stop selling Obamacare plans in 11 of the 15 states where it had participated in the program, reversing its plan to expand into five new state exchanges in 2017. “The exchanges are a mess as they exist today,” says Aetna Chief Executive Officer Mark Bertolini. “They’re losing a lot of money for a lot of people.”
http://www.bloomberg.com/news/articles/2016-08-17/obamacare-s-in-trouble-as-insurers-tire-of-losing-money
Don’t confuse him with the fact, Tony.
The politicians should look at Australia’s public/private system as an example.
Never mind oldtimer, ACA and TTP will both disappear with a TRUMP administration
GET ON BOARD THE #TRUMPTRAIN, MISH! Trump’s been talking about all of this and none of you have been listening. Are you going to prefer #CrookedHillary to win? GET OUT AND MAKE A DIFFERENCE AND VOTE TRUMP!
What Mish failed to mention was how much “Employer Provided” heathcare premiums have gone up as well. My company which employs 60K has raised premiums 35%, eliminated the individual for families (must reach family deductible for 80/20) and raised the out of pocket max to 12K. Most employees link our rise in employee health costs to what is going on with the ACA. BTW my monthly health care premium for employee/spouse is 960/month
Go Trump
Well stated
Mish
I’m in a similar boat. My payroll deduction for healthcare went up about 20% with an increased deductible. I really hope no one has to go to the hospital because now we have to pay $500/day copay capped at $2,500 per visit. Previously it was $250 per visit regardless of length of stay.
I have to ask, how is it that the major insurance companies moan about losing money on the people they have to cover now, but yet posted such extremely outrageous (Net? Gross? Total package worth?) pay for their top CEOs. I’d think that would factor in as a pretty big part of their losses for the companies.
And yes, I really am asking and not trolling. Saw some posts on facebook being passed around and choked coffee out my nose at the pay some of the wise-asses were getting for being at the top of the pyramid. Yeah, I feel the whole insurance biz is an enforced scam on everyone, but here I am shelling out for auto, home, life, and health insurance like the rest of the good slaves.
The bank is printing outrageous medical inflation.
Just received my bill for 2017 grandfathered policy. A bargain value at only 17% increase 2017 compared to 2016. Worried that 2017 will be the last year for this policy. I will then need to consider ACA policies for 2018 which are typically 50% higher for the same coverage. Will the Republicans actually get around to repealing this or at least making premiums fully deductible or will I get the shaft again ?. Sucks being one of the 5% that buys insurance directly rather than getting it through work. No political clout to fix this problem for me at all.
You will get the shaft again. Pubs and Dems are all owned by the health insurance industry.
What needs to happen is for employer provided health insurance to be ended, either by a law or by removing the tax break that companies get for providing health insurance. Doing this will put everyone on an equal footing.
Sounds like an excellent idea. But what kind of politician would propose something to annoy 95% with employer coverage to provide justice to the 5% with self paid policies. Never happen I think.
Reblogged this on John Barleycorn and commented:
Cost increases