Buh-Bye, Bronze!

First they came for HSA plans. Now it appears that the Rocket Surgeons behind the ObamaTax are about to drive out the most affordable least expensive (outside of Cat plans, which are available only to relatively few) plan design left:

"Insurers -- who might not be allowed the huge rate increases they need to stay solvent --- are looking to save money by eliminating so-called Bronze-level plans."

Briefly, those 3000% rate reductions were always a lie; carriers keep having to come back for ever greater rate increases to offset significant losses. Folks who choose Bronze level plans are looking to minimize their premiums, banking on avoiding substantial losses that would diminish those savings with higher out-of-pocket costs.

But this presents a problem to the carriers:

"In order to achieve solvency, the ObamaCare exchanges require 40% of their customers to be young and healthy enough to pay large sums over time into the markets without taking out much in benefits."

The problem is that there's no evidence that this goal has been met, and ample evidence that it hasn't:

"As of December 2015, only 28% of enrollees were between the ages 18-34"

Missed it by that much!

Losing Bronze tier plans means even fewer choices, and thus more expense. It's almost as if the whole process was doomed from the start.

Hunh.

[Hat Tip: Rich Weinstein]

DIAM '16: Real Life

I've always discounted the 'value' of group (aka employer provided) life and disability insurance. Typically, these are designed not to be there when you need it. No, I don't mean that they won't pay off on a claim, but rather that they're typically not actually in force at claim time (eg new job, unemployed or retired, etc). The challenge has always been that this is a judgement call; that is, I had no way to objectively quantify it.

Until now, that is, and at least for the disability portion:

I've been working on a case for a well-compensated local exec, whose paycheck renders her eligible for up to $12,500 a month benefit. She already owns a $5,000 per month policy on her own, and her employer-paid group disability plan provides an additional $7,500 to that.

Those playing along at home will notice that this seems to indicate that my client can't buy any more on her own: $12,500 less the $5,000 private plan and the $7,500 group cover equals zero.

But a funny thing happened:

It turns out that the two carriers I contacted about this case both offered an additional $4,000 a month benefit. Which tells me that they've discounted the group plan by almost 50%. So at least in this instance, I can put a quantifiable value on that group coverage.

Interesting, no?

Two Fine(s)!

■ Several months ago, we noted that MetLife was having some "issues" with the Feds about how they're (potentially) "too big to fail."

Well that was then, and this is now, and now is really painful for the erstwhile insurance behemoth:

"MetLife’s securities sales unit today was fined $20 million and ordered to reimburse $5 million to customers for wrongdoing related to sales of replacement variable annuities from 2009 to 2014."

Ouch!

Variable annuities often get a bad rap, but they're also fairly sophisticated instruments (as opposed to fixed products), which means extra-strength due diligence in their sale.

As Met is (painfully) learning.

■ FoIB Jeff M has been indispensable in keeping us apprised of the travails of the Tar Heel State's Blues, and today offers this update:

"North Carolina's insurance commissioner says he expects to issue big fines against Blue Cross and Blue Shield for technology problems that have resulted in insurance coverage and payment problems for thousands of customers."

And by "big fines" they apparently mean "millions of dollars," which certainly qualifies as "big," even by Blue Cross standards.

That's gonna leave a mark.

Health Wonk Review: Pivoting to November edition

Brad Wright outdoes himself with this week's amazing collection of posts, all seamlessly woven together into a compelling, interesting narrative.

Kudos, Brad!

And don't forget to tune into David Harlow on Blab next Tuesday (1:00 PM Eastern). He and his posse will be discussing Brad's terrific HWR.

NSVNHS© Strikes Again

Seems like the demise of the Not So Vaunted National Health System© is accelerating:

"'Neglected' pensioner's cries of 'please help me' recorded by family on hidden dictaphone in hospital days before death"

The poor woman was being "treated" at Sandwell Hospital, and by "treated" we mean bruised and neglected by those ostensibly charged with her care. It seems that the mask has slipped on how these systems actually work: previously, the use of wait times as rationing mechanisms seemed to work just fine. Now, however, it appears that more hands-on (so to speak) methods are required.

What's interesting (or, more appropriately, disheartening) is that the Brits' use of "boarding" seems to be alive and well.

Perhaps I should check that phrasing....

[Hat Tip: NDH]

Sweden Privatizing?

Sweden has long been pointed to as an exemplar of how nationalized health care schemes models can work effectively. Never mind that (at least until recently) that was due primarily to the homogeneity of the population; it worked.

Or did it?

Turns out that "nearly [o]ne in ten Swedes now has private health insurance,” with rising policy demand extending to half a million Swedes and growing throughout the 9.5 million living in the country."

Interestingly, most of them enjoy what we call ESI, or Employer Sponsored Insurance, and the trend line seems to be accelerating:

So what do you suppose is fueling this upsurge?

As (almost) always: wait times. As we've noted on numerous occasions, all nationalized health care systems ration care, and most of that rationing is accomplished through the use of long wait times, aka attrition. Still doubting that?

Exhibit A:

"Swedish health authorities have come under criticism over the death of a woman whose repeated calls to emergency services were ignored because she was still able to talk."

That's from 4 long years ago. Doesn't look like SvenCare©'s had much improvement.

And Introducing the Non-Sterile NSVNHS©

This morning we noted the rather steep decline in the reputation (such as it is) of the British healthcare scheme. It now appears that there may be at least one reason that's thus far flown under the radar:

"Muslim nurses in the UK have now been granted the option of participating in medical operations without washing their hands."

This isn't the first time that the NSVNHS© has bowed to pressure from its Muslim providers:

"Muslim doctors and nurses are to be allowed for religious reasons to opt out of strict NHS dress codes introduced to prevent the spread of deadly hospital superbugs."

It's not exactly breaking news that clean hands and garb are key to stopping the spread of virii and the like. But it's interesting [ed: don't you mean frightening?] that the Brits are letting Political Correctness supersede basic medical safety.

On the other hand, dead patients don't complain, or continue to drain the already overburdened "system."