Health Premiums to Rise?

Investment Analysis Clubs Macro Economic Trends and Risks
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(Disclosure: Early retiree here. I legally max out every darn subsidy to the dime.)

[https://www.cnbc.com/2022/06/27/health-insurance-premiums-th…](https://www.cnbc.com/2022/06/27/health-insurance-premiums-through-marketplace-poised-to-jump-in-2023.html)

“Health insurance premiums poised to jump next year for 13 million people unless Congress extends expanded subsidies for marketplace coverage”

“On average, premiums are set to rise by more than 50% for people getting health coverage through a marketplace plan.”

“The American Rescue Plan Act, which was signed into law in March 2021, removed — for two years — the income cap for eligibility (400%) of the federal poverty level.”

“Of the 14.5 million people enrolled in marketplace plans, 13 million receive subsidies of varying amounts to reduce what they pay in premiums.”

Will be very interesting to see how - - - -and if — action is taken. Why interesting? All I will say is let us see events in November. And then contrast that with…

WYOMING. SOUTH DAKOTA saw their premiums reduced the most in 2022 via American Rescue Plan.

TEXAS - 2022 Premiums would’ve been 55% higher without American Rescue Subsidy.

NORTH CAROLINA - premiums would’ve been up by 66% without the additional subsidies

https://morningconsult.com/2022/06/01/aca-premiums-subsidies….

OH, “Florida” seems on people’s minds here and there…

https://www.tampabay.com/news/health/2022/06/06/500000-flori…

“500,000 Floridians could lose health coverage without tax credits, study warns”

I won’t expand more - people on the board are smart enough. Just look at the potential November events coming up. And then - look at the states whose citizens and voters will be adversely, and visibly effected by curtailing or ending said subsidies.

If it wasn’t serious - I’d say this is gonna be fun to watch. But yes - - interesting for sure.

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At the same time a case will go before the [$C0TU$], and they will strike it down, eventually.

Hey, no politics!

:wink:

Pete

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The interesting part to me… will be those in power - going to their own constituents and saying “Yes, this stinks. We’ll get rid of it. Now fork over more money for health insurance and vote for me next time”

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(Disclosure: Early retiree here. I legally max out every darn subsidy to the dime.)

As it should be. Big tax subsidies shouldn’t only be reserved for billionaires and corporations.

https://www.nytimes.com/2011/03/25/business/economy/25tax.ht…

General Electric, the nation’s largest corporation, had a very good year in 2010.

The company reported worldwide profits of $14.2 billion, and said $5.1 billion of the total came from its operations in the United States.

Its American tax bill? None. In fact, G.E. claimed a tax benefit of $3.2 billion.

And Jack Welch was one of then most patriotic people in America.

Don’t let anyone tell you it’s “socialism” when a middle-class family gets a $5,000 or $10,000 tax credit for health insurance. That probably isn’t even enough to claw back “the skim” added by the price gougers in the health care industry, and the excessive Executive Compensation for the insurers.

My proudest moment in health insurance happened in 2021. I’d gotten my Obamacare premium for 2020 down to $1.43/month ($17.16 per year), and then in 2021, I got a check from my health insurer for $662.40 because they ran afoul of the “20% insurance skim” rule that requires them to spend at least 80% of the premiums collected on actual health care services.

Now I understand the patriotism that Jack Welch felt.

intercst

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"[https://www.cnbc.com/2022/06/27/health-insurance-premiums-th…](https://www.cnbc.com/2022/06/27/health-insurance-premiums-th)…

“Health insurance premiums poised to jump next year for 13 million people unless Congress extends expanded subsidies for marketplace coverage”"

Is inflation triggering costs increases across all industries going to be solved
by congressional spending plans - or extending expanded subsidies?

Howie52
Subsidized healthcare may have a small reduction in supply of healthcare and may have a minor
increase in demand for healthcare. Does not seem to predict a reduction in healthcare costs.

An alternate approach might be to provide subsidies to increase the supply of doctors, nurses
and healthcare facilities. Maybe increase the number of medical schools?

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Some good stuff there Howie.

While I still think - one side is going to face the prospect of literally telling its own voters “Pay more, it’s good for you, sis boom bah” I do agree subsidies are short term.

Love what you said about increasing supply of practitioners. Sadly, part of that means elevating academics in our culture to the same level as say…soccer. Also, it would mean actively recruiting well educated people from other countries. But - just like one side wants their constituents to pay more for insurance - there’s a mentality that is oh so open minded to foreign labor - just not when high tech or medicine or engineering jobs might be threatened. I’d be rolling out the red carpet…