2014
According to HHS 3.3 million Americans have enrolled in a marketplace plan through January. But there are a few things we don’t know.
🔵How many of the consumers who signed up actually paid for their first month’s premium, a requirement to actually be insured.
🔵Which insurance plans consumers chose
🔵How many of those signing up for coverage were previously uninsured.
All this information is important as it will tell the full story of how successful the initial year of Obamacare will be. It will also give some insight into what may happen in 2015, perhaps even more important than 2014.
As an aside, I have talked with a couple of insurance companies. While it’s quite early to assess experience, they are already seeing higher than expected claims in the first few weeks of 2014. Should this prove a trend, premiums for 2015 and more likely 2016 will be interesting to explain.
Remember, the primary driver of premiums is the cost of health care incurred by the insured population. Premiums for 2014 were under intense pressure from regulators in an attempt to make health insurance appear “affordable.” That cannot be sustained for 2015 and beyond if claim costs accelerate beyond expectations. Reinsurance and risk sharing will smooth things among insurance companies for a couple of years, but eventually claims are claims and must be paid by someone.
QUINNSCOMMENTARY 
thanks for the warning, however, i don’t expect anything to go down or even stabilize the way this administration operates…..that goes for just about anything we purchase…including health care……does anyone want to bet me that when all is said and done insurance companys will be bailed out with billions of dollars of tax payer money(not with standing existing plan subsidies) before this” illusion” of affordability is put to rest?
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