Right On Daily Blog

An Analysis By The Wall Street Journal Found That Many Americans That Reside In Rural, Poorer Areas Of The Country Face Limited Health Options And High Premiums On The ObamaCare Exchange. “Hundreds of thousands of Americans in poorer counties have few choices of health insurers and face high premiums through the online exchanges created by the health-care law, according to an analysis by The Wall Street Journal of offerings in 36 states.” (Timothy W. Martin and Christopher Weaver, “For Many, Few Health-Plan Choices, High Premiums On Online Exchanges,” The Wall Street Journal, 2/13/14)

• “Consumers In 515 Counties, Spread Across 15 States, Have Only One Insurer Selling Coverage Through The Online Marketplaces, The Journal Found.” (Timothy W. Martin and Christopher Weaver, “For Many, Few Health-Plan Choices, High Premiums On Online Exchanges,” The Wall Street Journal, 2/13/14)

An Office Manager In Rural Florida, The Cost Of A Midlevel Plan Was About $200 More Expensive That A Similar Plan Offered In Tampa. “Rebecca Stephens, an office manager from Wauchula, Fla., recently discovered there was only one health insurer offering coverage in rural, low-income Hardee County, and the midlevel plan she wanted to buy cost about $200 more a month than a similar plan in nearby Tampa.” (Timothy W. Martin and Christopher Weaver, “For Many, Few Health-Plan Choices, High Premiums On Online Exchanges,” The Wall Street Journal, 2/13/14)

• Rebecca Stephens: “That It Costs Me More For Health Insurance Than Someone In Tampa Doesn’t Seem Equal To Me.” “‘That it costs me more for health insurance than someone in Tampa doesn’t seem equal to me,’ said Ms. Stephens.” (Timothy W. Martin and Christopher Weaver, “For Many, Few Health-Plan Choices, High Premiums On Online Exchanges,” The Wall Street Journal, 2/13/14)

For A Small Business Owner In Rural Georgia, The Cost Of Coverage On The ObamaCare Exchange Is Unaffordable. If Lee Mullins lived in Pittsburgh, he could buy mid-level health coverage for his family for $940 a month. If he lived in Beverly Hills, he would pay $1,405. But Mullins, who builds custom swimming pools, lives in southwest Georgia. Here, a similar health plan for his family of four costs $2,654 a month. This largely agrarian pocket of Georgia, where peanuts and pecans are major crops and hunters bag alligators up to 10 feet long, is one of the most expensive places in the nation to buy health insurance through the new online marketplaces created by the federal health law.” (Jordan Rau, “In Rural Georgia, Federal Health Insurance Marketplace Proves Unaffordable To Many,” The Washington Post, 2/1/14)

People That Don’t Qualify For ObamaCare Subsidies Or Receive Small Subsidies, The Cost Of Health Coverage Is “Overwhelming.” “But for those earning too much to qualify for federal financial help, the premiums can be overwhelming. A 60-year-old making $47,000 in Albany would have to pay a quarter of her income for the least expensive mid-level ‘silver’ policy, the level most consumers are buying.” (Jordan Rau, “In Rural Georgia, Federal Health Insurance Marketplace Proves Unaffordable To Many,” The Washington Post, 2/1/14)

• After Selecting A Plan For Her Son, A Pottery Shop Owner In Rural Georgia Has Decided To Forego Insurance Coverage For Her And Her Husband As Rates On The ObamaCare Exchange Were Unaffordable. “Even some people who qualify for federal assistance, such as Stacie Brown, owner of a pottery shop, are balking. The cheapest ‘bronze’ plan for Brown, her husband and son would cost the family $300 a month but not begin paying medical bills until they exceeded the $6,300 individual deductible. The cheapest silver plan would cost $508 a month but not start paying until a $3,000 individual deductible was met. Her son’s pediatrician was not in any of the networks, and that was the one medical service she felt sure her family would use. Brown ultimately bought a $256-a-month Assurant Health plan for her son, sold outside the marketplace, which covers his pediatrician and unlimited office visits. She and her husband have decided to forgo coverage for themselves, even though they may face a tax penalty of $700. ‘I can’t afford the affordable health care,’ she said. ‘I don’t know anyone in this area who can afford it, and I do pretty well in life.’” (Jordan Rau, “In Rural Georgia, Federal Health Insurance Marketplace Proves Unaffordable To Many,”The Washington Post, 2/1/14)

As The Obama Administration “Touted” The Number Of ObamaCare Enrollees, Many See “Warning Signs Amid The Statistics.” “The Obama administration’s most recent tally of enrollees under the Affordable Care Act highlights the wildly divergent views of the program’s success status. The Department of Health and Human Services (HHS) touted figures released Wednesday as reason for optimism, while others see only warning signs amid the statistics.” (Sharyl Attkisson, “On ObamaCare Enrollment, Insurers Don’t Share Government’s Optimism,” CBS News, 2/13/14)

The Lack Of Young, Healthy Enrollees Will Increase Premiums For Everyone

The Number Of Young Adults Enrolling In ObamaCare “Is Well Below The 38 Percent” Projected By The Obama Administration To Achieve A Health Risk Pool. “U.S. government data released this week show the demographic of adults aged 18-34 rose only slightly by the end of January to 25 percent of total enrollment in private ObamaCare plans. That is well below the 38 percent that administration officials have talked about achieving to give insurers a strong mix of healthier members, whose premium payments help offset the cost of older, sicker policyholders.” (David Morgan, “ObamaCare Enrollment Push for The Young Enters 11th Hour,” Reuters, 2/14/14)

• Only 25 Percent Of ObamaCare Signups Are Young Adults. “But only 25 percent of those enrolled were between the ages of 18-34, well below the 40 percent benchmark the administration set for the age group. Younger, healthier enrollees are necessary to subsidize coverage for older enrollees.” (Zeke Miller, “ObamaCare Enrollment Still Lagging With Young People,” Time, 2/12/14)

Insurance Industry Representative Robert Laszewski: “There Is No Way You Can Get A Good Spread Of Risk With Such A Small Percentage Of The Total Eligible Signing Up.” “But the rosy portrait shatters under an alternate interpretation by insurance industry representative Robert Laszewski of Health Policy and Strategy Associates. ‘They made a big deal about the age results,’ said Laszewski after reviewing the HHS numbers. ‘But the greater challenge for them is the low number of people enrolling. There is no way you can get a good spread of risk with such a small percentage of the total eligible signing up.’” (Sharyl Attkisson, “On ObamaCare Enrollment, Insurers Don’t Share Government’s Optimism,” CBS News, 2/13/14)

• Laszewski Said The Enrollment Number Don’t Look Great As Only A Fraction Of The Previously Uninsured Have Enrolled. “‘Looking at the total of 3.3 million, netting out the non-pays, and listening to the anecdotal carrier reports, it doesn’t look like we have more than a fraction—certainly something less than 10%— of the previously uninsured,’ said Laszewski. (Sharyl Attkisson, “On ObamaCare Enrollment, Insurers Don’t Share Government’s Optimism,” CBS News, 2/13/14)

“The Concern Is That The Fewer Young Adults Sign Up, The Higher Insurance Costs May Have To Rise For 2015.” (David Morgan, “ObamaCare Enrollment Push for The Young Enters 11th Hour,” Reuters, 2/14/14)

• If The Trend Of Young Adults Enrolling Continues, The Nonpartisan Kaiser Family Foundation Said Premiums Would Rise 2.4 Percent In 2015. “Analysts at the nonpartisan Kaiser Family Foundation maintain that even if youth enrollment remains unchanged at 25 percent, it would add only 2.4 percent to 2015 premiums because the law compensates insurers for unexpected losses.” (David Morgan, “ObamaCare Enrollment Push for The Young Enters 11th Hour,” Reuters, 2/14/14)

A Source Involved With ObamaCare Implementation Called The Number Of Young Adults Enrolling In ObamaCare As “Progress” But “Roughly 40 Percent Of Enrollments Are Needed “To Help Achieve A Balanced Risk Pool.” “CBS News also received a guarded analysis from a source involved in implementation of the Affordable Care Act who supports ObamaCare. The source said the bump of young invincibles to 27 percent of January enrollees was ‘progress,’ but added ‘they neglect to point out that they need roughly 40 percent to help achieve a balanced risk pool’ necessary under a successful business model.” (Sharyl Attkisson, “On ObamaCare Enrollment, Insurers Don’t Share Government’s Optimism,” CBS News, 2/13/14)

And People Aren’t Paying Their Premiums On Time, Possibly Skewing White House Enrollment Figures

“One In Five People Who Signed Up For Health Insurance Under The New Health Care Law Failed To Pay Their Premiums On Time And Therefore Did Not Receive Coverage In January.” “One in five people who signed up for health insurance under the new health care law failed to pay their premiums on time and therefore did not receive coverage in January, insurance companies and industry experts say. Paying the first month’s premium is the final step in completing an enrollment. Under federal rules, people must pay the initial premium to have coverage take effect. In view of the chaotic debut of the federal marketplace and many state exchanges, the White House urged insurers to give people more time, and many agreed to do so. But, insurers said, some people missed even the extended deadlines.” (Robert Pear, “One-Fifth Of New Enrollees Under Health Care Law Fail To Pay First Premium,” The New York Times, 2/14/14)

The Obama Administration Defines An ObamaCare Enrollee As Someone That Has Selected A Health Plan – Not Someone Who Has Paid Their First Month’s Premium. “The administration has been criticized for releasing enrollment figures that include people who have selected a plan, but have not completed the process by making their first premium payment. Critics have warned that the administration’s numbers are inflated because not everyone who selects a plan will complete the final step needed to obtain coverage. … HHS has said it is not breaking down enrollees by who has made a payment because they only have access to information about those selecting plans on the HealthCare.gov website, as consumers are expected to pay the insurers directly after enrolling.” (Jonathan Easley, “Report: 20 Percent Failed To Pay ObamaCare Premiums,” The Hill’s Health Watch, 2/14/14)

• Insurers Only Count Enrollees That Have Already Submitted A Payment. “Health insurance plans only count subscribers as enrolled in a health plan once they’ve submited a payment. That is when the carrier sends out a member card and begins paying doctor bills.” (Sarah Kliff, “Who Counts As An ObamaCare Enrollee? The Obama Administration Settles On A Definition,” The Washington Post’s Wonk Blog, 11/11/13)