Insurers in New York City that offer plans through the state’s Affordable Care Act exchange are looking to raise their premiums for next year—by as much as 28 percent. NYT has more:
Beth Leibson, a Manhattan resident, received a letter from MetroPlus saying it was working on raising her rate by 28 percent. She said this was a higher one-year increase than any rate rise she had had with previous insurance, including insurance under the federal law known as Cobra, where she paid the entire bill. “It seems to me that this defeats the purpose of ‘affordable’ health insurance,” Ms. Leibson said.
Over all, including plans inside or outside the exchange, insurance companies asked for average rate increases of 13 percent in 2015, the state’s Financial Services Department said Wednesday. The requests cover individual and small-group plans, but not large-group plans like those offered by large companies and government employers.
As the article notes, these are just requests and the actual increases approved by the regulators will probably be less. In addition, subsidies will rise to meet the increases. But shifting the burden of increasing costs onto taxpayers doesn’t change the fact that, once again, we are seeing our system get more and more expensive year on year. Even if the increases come in below 13 percent, they will still be well above inflation.
Even if we are able to spread the pain of subsidy increases around this year and next year and the year after that, we will reaching a breaking point where all the cost-shifting in the world won’t be able to prop up our unsustainable system.