Quote:
Originally Posted by Fat Elvis
Well, yeah, it actually does...when you allow those who are least likely to use the insurance to leave the risk pool, costs tend to go up for everyone else. Anthem and UHC aren't just going to rely on local employer based aggregates for individual actuarial analysis; they are looking at a national scale.
This was the first year that the individual mandate wasn't enforced, so the insurance companies were probably pretty aggressive in their cost structure and why you saw a premium increase of over 25% (at least for the employer) year over year. You can probably expect double digit increases year over year going forward.....
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For the record, I’m a health actuary at a major insurer (not United or one of the Blues), so I’m intimately familiar with how commercial insurance is priced.