Tuesday, June 18, 2013

Oregon State Exchange Healthcare Rates to Rise 78% for Young People

Obamacare is turning out to be a great voter education bill.
Today, a 25-year-old male who lives in Portland can purchase an “Oregon KP 2000/20%/HSA/Rx” policy from Kaiser that has 20% copayments, a $2,000 deductible and a $5,000 out-of-pocket maximum. It costs $129 per month. The most comparable exchange plan, a “silver” plan, has 25% copayments, a $1,750 deductible, and a $5,000 out-of-pocket maximum. It costs $229 per month—78% higher.

None of this means that the exchange plans will provide inferior care or inadequate protection against financial risk. But it does show that the Affordable Care Act’s goal of expanded coverage is going to require much higher premiums, especially for young people, and significant changes in the access and low cost-sharing that Americans have come to expect.
[emphasis added]
Imagine if an insurance company had asked for a 78% rate increase on its own.  Think of the public outcry.  But, now it looks to be a part of Oregon's health exchange plan.  Remember that the "purpose of the health insurance exchanges is to make health insurance more affordable and easier to purchase for small business and individuals."

Probably not easier, and certainly not more affordable.
Surprise, young people! The state plan is going to make you pay a lot more for the same healthcare. That's what "expanded coverage" requires. This is voter education 101. You might want to write your two U.S. Senators and your U.S. Representative and think about your 2014 vote.

H/T and thanks to MaxRedline


MAX Redline said...

Cheaper for the kid to pay the "penalty" - it's only $500 for failure to provide proof of insurance.

T. D. said...

Much cheaper. Will they be incensed that they have to pay $500 for nothing or $100 more per month for what they are getting now? What are the chances it will heal the disconnect between their voting preferences, trust in government and reality? I'm hoping that hard experience will have an impact, but not holding my breath.

Thanks, Max, for your post. I tried to post a comment twice, but there is some problem at times between my computer and the system. So, the H/T comment here added the thanks.

MAX Redline said...

Hey, much appreciated. I'm about to post one over at Redline which cites your post (after I scroll down and find the link) regarding The Zero dropping staff, going to 3-day-a-week print, and concentrating on digital - they just announced that about 4 hours ago. Good work, sir!

T. D. said...

Max, I was stunned that they are going to continue daily printing, just not household delivery. But, I have found out (see new post) that going to digital and 3 days a week print publishing in New Orleans has been a disaster for Newhouse Newspapers/Advance Publications.

In any case, the Oregonian has been so poor on the digital front that they have a lot of ground to make up to begin to be attractive there and compete. I hate doing a search on their site. You have to know exactly what you are looking for and the right phrase to use or you may miss a major story they have published. And, of course, of most importance they have to come up with valuable content instead of lazy reporting.