Premiums are SKYrocketing!
Deductibles are HUUUGE!
Insurers are DROPPING OUT!
Can’t we all just chill for a minute?
Yes, rates are going up, but the proposed rate increases are:
- lower than historical trend rates
- still to be approved by regulators
- not as big a deal as one might think because consumers are shopping around and getting better deals
- for plans that cover 17% more benefits than pre-ACA plans
To be fair, deductibles and coinsurance costs are much higher than pre-ACA, continuing a trend that’s been around for years.
My take is these economic cost control mechanisms are going to run their course, and we’ll see much more focus around care management and network management going forward.
That said, isn’t this EXACTLY what we were supposed to get from consumer-driven health care plans? Insurers that are using economic levers to incent consumer behavior, narrowing networks to use buying power to get lower prices and focusing care management efforts on the 5% that generate 50% of costs will succeed, those that don’t understand this market or how to compete will fail.
What does this mean for you?
Expect health plans totally committed to the new health care market to win. And that success will make them much tougher competitors in the group health market in years to come.
Watch out, Anthem, UHC, and Aetna