Econintersect: Anyone who reads the reports in the press about the implementation of Obamacare may be confused. Stephanie Kirchgaessner has a short article in the Financial Times that indicates reports of the success, even the viability, of PPACA (the Patient Protection and Affordable Care Act of 2010) vary widely depending whether reported by Republicans or Democrats. The red assessments are uniformly negative and the blue assessments the opposite.
According to Kirchgaessner, many of the reports are unreliable because of selective data usage.
Ohio’s lieutenant governor Mary Taylor has said that insurance premiums in her state will increase for individuals by 41% under Obamacare, according to the FT. New York has said that premiums will be cut in half.
California insurance premiums will between 2% higher and 29% lower for small employer plans in 2013, according rates submitted by insurance companies, according to benefits pro.
Criticism of reports from Democratic states include the neglect of “unique local factors” and not specifically identifying cost reductions and increases based on demographic factors. especially age.
Criticism of reports from Republican states include comparing the costs of plans that are substantially difference in coverage.
The FT article indicates that Gary Claxton, vice-president of the Kaiser Family Foundation, says:
... some states that support the law are more aggressive in negotiating competitive rates with insurers…
and
…the biggest divide between the “red” and “blue” states is not in the plans themselves, but in how they are being sold to the public.
Healthcare consultant Avalere says that average premiums are lower than earlier estimates by the CBO (Congressional Budget Office), according to the Financial Times.
The states with active roles and passive roles in Obamacare implementation are shown on the following map:
Click on map for larger image with captions at Avalere Health LLC.
Note: “FFE – Marketplace Plan Management” refers to Federally Facilitated Exchanges that are managed by the state after establishment.
The increase in the uninsured population has been estimated by the Kaiser Foundation who provide the following map:
Click on graphic for interactive map with detailed data at the Kaiser Foundation.
A study of several states by Center-Forward reported that premiums will rise for healthy young males and decrease for the less healthy and older insureds. The changes did not reflect federal subsidies based on income which the study estimated would apply to 42% to 53% of insureds, depending on state.
Sources:
- States wage war of words over ‘Obamacare’ fees (Stephanie Kirchgaessner, The Financial Times, 04 August 2013)
- California exchange to include 13 health plans (Kathryn Mayer, benefits pro, 23 May 2013)
- PPACA Insurance Exchanges Map (Avalere Health LLC)
- PPACA Insurance Coverage Map (Kaiser Foundation)
- Plan Management: Issues for State, Partnership and Federally Facilitated Health Insurance Exchanges (Sabrina Corlette, JoAnn Volk and Kevin Lucia, The Center on Health Insurance Reforms, Georgetown University, May 2012)
- Building Your Tomorrow, Today (Courtney Mayorga, NAIC, 05 May 2013)
- Why health insurance premiums are changing (Center-Forward, May 2013)
