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'Backdoor tax' likely to increase rates

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Megan Seda met friends in Washington, D.C., over the weekend to protest the health care reform bill.

As the owner of an individual insurance policy, Seda is concerned about the immediate effect it will have on her premiums.

"For ordinary people like me -- I haven't been to the doctor for being sick in probably a decade. My insurance is not that expensive," she said.

By forcing insurance companies to insure people with chronic conditions such as diabetes, the bill will likely drive her rates up, or even force the insurers out of business, Seda said.

"It's essentially a backdoor tax," she said.

Seda, the president of Columbia County Young Republicans and a planner for Augusta's Tax Day Tea Party April 15, said she's less involved with a "Repeal the Bill" petition now because it's not likely to succeed anytime soon. Republicans will need a two-thirds majority in the House to override a presidential veto of any repeal, she said.

"The main thing is that there are going to be some immediate mandates that are going to be very unprofitable for insurance companies."

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johnston.cliff
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johnston.cliff 03/24/10 - 06:06 am
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Nothing matters as long as

Nothing matters as long as the subsidy people get more goodies. Save the non-productive and destroy the economy, what a good idea. Thanks obamassiah.

Fish Out of Water
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Fish Out of Water 03/24/10 - 06:46 am
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Megan fails to account for

Megan fails to account for the healthy people that will also be buying into the insurance pool, offsetting the chronically ill that are now receiving their long overdue coverage. Also, she fails to acknowledge that neither mandate kicks in until 2014. As aside note: Surely, no one thinks it's a bad thing that chronically ill patients will be getting more insurance options, right?

johnston.cliff
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johnston.cliff 03/24/10 - 07:22 am
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Fish out of water(obviously)

Fish out of water(obviously) The not-ill paying for the health care of the ill is a hidden tax. Delaying a tax doesn't stop it from being a tax. The obamacare will receive tax money for 4 years before any "mandates" kick in. Insurance options and confiscating someones money to pay your bills aren't the same thing. This socialist takeover of the entire health care industry seems to have far reaching features that are beyond your comprehension, as planned by the authors.

Riverman1
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Riverman1 03/24/10 - 07:27 am
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Fishoutofwater, what healthy

Fishoutofwater, what healthy people will be buying insurance? It costs about $3000 a year for health insurance in Georgia. Why do you think there will be a lot of people running out to buy insurance now when they didn't before? What they will do is pay the $700 "fine" and get their medical care. The bottom line in all this is that those with insurance will see their premiums rise and their taxes increase. That is until the country is totally out of money and scraps this program completely.

Kapa18
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Kapa18 03/24/10 - 08:32 am
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Young Lady, if I can call you

Young Lady, if I can call you that...did you even read what you wrote...
"The main thing is that there are going to be some immediate mandates that are going to be very unprofitable for insurance companies", that's why were doing IT!! To take away the the Health Care for Profit philosophy which drives up rates that prices out the consumer. Please discuss this at your next meeting of the Columbia County Young Republicans and Tea Party. Use coloring books and crayons if you need to. Oh and you haven't been sick, that's good but keep on living. But what about your friends, family, you don't know anyone with Cancer, diabetes, highblood pressure, MS...or is it you just don't care how they make it, it's all about you. Again, keep living...nothing is real until it comes to your door step and by then my dear child it's tooooooooo late to do anything.

Chillen
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Chillen 03/24/10 - 09:06 am
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Riverman is 100% right.

Riverman is 100% right. Young healthy people will just pay the fine. It is much cheaper than insurance. If they get really sick or pregnant, they'll go get a policy - since now they can't be denied.

And the fine does not go to the insurance companies to help pay for the additional financial burden that they will face with all these sick people thrown into their mix. The fine will go to the IRS - the US Government.

The only people with a policy will be the unhealthy. Premiums are going to skyrocket - starting soon - in anticipation of this.

This bill is a disaster for our freedom and our wallets. And it will be a nightmare to administrate. I heard on the news today that they are already beginning to look at all hiring all the extra IRS staff members and Health & Human Services staff members. More government bloat.

jack
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jack 03/24/10 - 11:02 am
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As aside note: Surely, no one

As aside note: Surely, no one thinks it's a bad thing that chronically ill patients will be getting more insurance options, right?

Fishout of water, so long a s I don't have to pay for them, which is what the writer is saying, and she's right.

jack
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jack 03/24/10 - 11:08 am
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kapa, FACT: the insurance

kapa, FACT: the insurance companies make about 3% margin of profit. Not what the DIM propagandists put out. I am glad to see they can't cancel on you when you get sick or have outlandish deductibles and caps. I guess you are also gald that the elderly are having their Medicare robbed to pay for the usual dead beats.

blondietoo007
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blondietoo007 03/24/10 - 01:42 pm
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If you took away those BIG

If you took away those BIG insurance profits it would pay for health care for two days in the US...who is gonna pay for the other 363 days? There is a reason why health insurance companies are solvent; they have to set aside LARGE amounts of cash reserves to pay claims, so they are not able to invest reserves (stock markets) like other companies... the reason that premiums go up is the cost shifting from hsopitals/doctors from the Medicare/Medicaid patients to the private market - oops, what just happen - more cost shifting cause Medicare got cut more; then what - oh, your premiums went up more. In the bill there is also 2:1 ratio pricing that will be enforced (oops premiums went up again). The eventual result? Goverment Option b/c all the insurance companies go out of business....

stephr721
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stephr721 03/24/10 - 05:51 pm
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Wal-Mart's profit margin is

Wal-Mart's profit margin is around 3.5% - it's sad to see that they and the health insurers are barely making ends meet.

ron_rlw
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ron_rlw 03/24/10 - 05:56 pm
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As far as the insurance

As far as the insurance premium, Obama has made it sound as if the insurance companies magically grow money and will just absorb the increase cost of doing business. The fact is there is no magic, the insurance companies have to pay all the medical claims and business cost out of the money they get from the premiums they charge their policy holders. Now … both the claims and the cost of business will significantly increase and the premiums will have to increase to match the increase cost.

Increased cost in claims will result because:

1. Preexisting conditions. The wording in the bill ensures that the majority of these folks will never pay as much in premiums as the insurance company will have to pay in claims. Therefore everyone’s premiums will have to go up to offset the cost.
2. Rising the dependent child age to 26. In my case that would be increasing the coverage by 3 years. This will cause the insurance company to pay claims for 3 extra years. They will have to increase the cost of the premiums for family coverage to cover this extra expense.
3. Removing the upper limit on the amount of coverage the insurance company will pay. These extra claims will end up costing the insurance company extra money which can only be offset by increases in the premiums the insurance companies pay.

Increase cost in the day to day operation of the company:

1. The cost to comply with a new layer of federal regulations built on top of the State regulations. This cost can only be offset by increasing the premiums the policy holders are charged.

If folks were willing to pay these increased premiums in the first place, I’m sure insurance companies would have been willing to provide the insurance. However, since there is no demand for this coverage by the average policy holder, the insurance companies don’t offer it.

The Bill also has language that forces the insurance companies to justify any rate increase to offset these cost (unless they do it before the bill goes into affect), however if the Obama administrations doesn’t allow the increase then the insurance companies will not be able to meet their commitment to their current policy holders and the new (unfunded) commitment Obama has forced on them. If they can’t meet their commitment then they will go out of business. I believe Obama is smart enough to know this, so I can only conclude this is Obama’s intentions and how he plans to get to a government single payer system.

bigalsc
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bigalsc 03/24/10 - 06:03 pm
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I have a good friend who has

I have a good friend who has been a policy writer for Blue Cross/Blue Shield for 25 years. She acknowledges, and the insurance companies know, that if healthcare costs aren't brought under control insurance prices will skyrocket. This is already happening. As persons with private policies are forced out by high cost, there will not be enough income to pay claims for those in group policies.That is why the insurance lobby has been so quiet. They just got 30 million new customers, so now they can keep the party going, subsidized by the young and healthy. Otherwise, the sustem will collapse in on itself. So something had to be done,and quickly, to prevent imminent collapse, and its happened.And your points that premium costs will go up are laughable. Haven't you noticed? They are going up anyway! They have for many years!

ron_rlw
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ron_rlw 03/24/10 - 06:16 pm
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biqalsc ... yes the insurance

biqalsc ... yes the insurance rates are going up, that's because the actual cost of health care is going up ... this bill does nothing about health care cost.

The 30 million extra customers are a great boom to the insurance companies ... only if their premiums more than cover their claims. Notice that the 30 million are also the ones that Obama and his supports say can't afford the insurance ... so their premiums will be paid by the tax payers. Others in this 30 million are there because of pre-exsisting conditions ... the bill won't allow the insurance companies to raise their premiums to cover their cost ... that has to be covered by the rest of us.

The insurance companies are betting on Obama not restricting their rate increase.

I noticed you didn't bother to answer my points showing where the cost of doing business for all insurance companies is going up ... no because of the health care cost is going up ... but directly because of this "so-called" health care bill ... which has nothing to do with health care only health pay.

corgimom
32364
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corgimom 03/24/10 - 08:27 pm
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This was the same person who

This was the same person who said the protests were civil and who felt that she could speak for over 15,000 people. She has bigger concepts to dwell on than health insurance.

Nat the Cat
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Nat the Cat 03/24/10 - 08:58 pm
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Megan, I am very proud of

Megan, I am very proud of what you are doing @ Columbia County Young Republicans. But please start reading these threads from your fellow-Republicans--Increased Insurance Premiums as a direct result of the Obama HCB have never been thought of as "back-door." They are roaring down your street, coming right up your driveway, crashing through your "front door," and staying in the house until we do something about this Health Care Law. Also, although they don't make very much sense at times, please pay close attention to the opposition's arguments. Keep your friends close, but your enemies closer! Good luck and do not give up the fight! Nat the Cat

Riverman1
83887
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Riverman1 03/24/10 - 08:56 pm
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I'd kind of get big headed

I'd kind of get big headed too if I spoke to 15,000 people. I can't imagine anyone in the county has ever spoken to so many. Plus, she's right, it's a backdoor tax.

Nat the Cat
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Nat the Cat 03/24/10 - 09:19 pm
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You're absolutely right

You're absolutely right River. The example in Ms. McCord's article is a perfect example of an "indirect" method of increasing taxes on Individuals by increasing their Insurance Premiums in order to pay for the "brand new sick people," who have been added to the roles of the Insured as a result of Obama's new Law. However, I was speaking of "direct," increases [albeit not very clearly], of our Insurance Premiums as a direct result of the HCB which are too numerous to mention. And, I agree, a courageous young lady--talk about stage-fright!

corgimom
32364
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corgimom 03/24/10 - 09:32 pm
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I didn't say she spoke TO

I didn't say she spoke TO 15,000 people, I said that she spoke FOR 15,000 people. Sheesh.

Techfan
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Techfan 03/25/10 - 08:49 am
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mSeda
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mSeda 03/25/10 - 12:52 pm
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Corgi says: "This was the

Corgi says:
"This was the same person who said the protests were civil and who felt that she could speak for over 15,000 people. She has bigger concepts to dwell on than health insurance."

It doesn't say anything like that in the article. Would you care to site your sources?

dstewartsr
20389
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dstewartsr 03/25/10 - 07:12 pm
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Like Nancy Pelosi, corgi can

Like Nancy Pelosi, corgi can hear and read things the rest of us mortals cannot. In that she and justus both can know what is in people's heart... perhaps her letter is just 'code' for 15,000 people.

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