Don’t Grab Your Pearls: ACA Exchange Premium Increase in Nevada 6%

Premium Increase Map

Far from it. First, these are REAL numbers, not Trumpian hyperbole about ACA exchange purchased premium increases.  Secondly, increases in insurance premiums whether exchange purchased or privately purchased are going up.  The insurance companies set the premium prices; and if a person used the exchange to buy personal health insurance, and qualifies for a subsidy, then the increase will be felt less than if the insurance isn’t subsidized.

However, this is an excellent argument FOR a PUBLIC OPTION, which would provide competition for the private insurance corporations (and thereby could cause some cost-containment not now built into the system).  We could, for example, allow private citizens who don’t have health insurance provided by their employers to buy into the Medicare system.

Why the increases? Business Insider explained last May:

“However, the most important factors associated with lowest-cost silver plan premiums and premium increases are those defining the contours of competition in the market,” the report concluded. “Rating areas with more competitors had significantly lower premiums and lower rates of increase than those that did not.”

“The paper also found that there was one player that had more of an effect on prices than any other provider.

“Those rating areas with a Medicaid insurer competing in the marketplace also have lower premiums and lower rates of increase than those regions without a Medicaid insurer competing,” Blumberg, Holahan, and Wengle said.

This is an issue as insurance companies evaluate the profitability of the state exchanges. With considerable political pushback against expanding Medicaid, private insurers will have to carry most of the load and provide competition.”

Or, to put it more succinctly – Republican opposition to the expansion of the Medicaid programs helps drive UP health insurance premium costs.  Full. Stop.

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