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Individual Insurance Cost Hikes Stemming From ACA Likely

[preamble]I find it utterly improbable and impossible that health costs can rise EVERY YEAR 15-40%. Its not plausible. Being a business person and understanding a little about cost-sell-profit/supply-demand and other basic business practices, i want to see the ACTUAL cost and profit of 1 insurance company and i want full justification of their need to keep raising premiums.

Everyone who “thinks” they know state the same thing – the cost of health care in the US is massive lalalal – ok – show me the money please – exact numbers. We all know hospitals are run like shit and would never survive in the “real” world and we all know that 15% is “stolen”, lost, damaged, used in house and so on. These are very real business numbers, owning businesses and restaurants, 5-15% is a given in theft form employees and customers – we try to control it to reduce it but realistically it always exists – hence, show me the where every dollar goes and where this so called “crisis” is. Prove the hype please. The article ends with “subsidies” for the people – they really mean WE WILL BE PAYING MORE. [backtopost]

Accompanying the release of a study from the nonpartisan Society of Actuaries which projected increases in the medical costs of individual health policies across the country next year, HHS Secretary Kathleen Sebelius acknowledged Tuesday that the Affordable Care Act may contribute to some insurance premium hikes next year.

Reuters (3/27, Mason, Morgan) reports that on Tuesday, HHS Secretary Kathleen Sebelius admitted that premiums could rise next year for individuals buying health insurance, especially for men and young adults. Sebelius attributed the possible increases to “shifting” in the market due to the full implementation of the Affordable Care Act. She said, “Women are going to see some lower costs, some men are going to see some higher costs. It’s sort of a one to one shift. … Some of the older customers may see a slight decline, and some of the younger ones are going to see a slight increase.” The article notes that Sebelius’ comments come as many fear rising health costs due to the law, and on the same day as the release of a study from the Society of Actuaries which estimated individual insurance premiums will rise 32% over the next three years.

The Wall Street Journal (3/27, Radnofsky) “Washington Wire” blog reports that Sebelius also said, “These folks will be moving into a really fully insured product for the first time, and so there may be a higher cost associated with getting into that market. But we feel pretty strongly that with subsidies available to a lot of that population that they are really going to see much better benefit for the money that they’re spending.”