Healthcare

Time for limitations on unrestricted open enrollment in Obamacare

The first open enrollment for Obamacare began October 1, 2013. That means we are now in the third enrollment. During that time the law required, under threat of penalty,  that all Americans  (with numerous exceptions) carry health insurance. Millions have ignored that requirement with little consequence.

IMG_2303The law also requires that all comers must be accepted without regard to pre-existing conditions. In other words, wait until you really need coverage and then enroll. To the extent people enroll with exiting health care needs, their costs are subsidized by others in the insured group because late enrollee health care costs generally exceed their premiums, sometimes significantly.

It’s time for a change. Individuals who do not enroll as soon as they are eligible – meaning the next open enrollment in 2016 for currently uninsured – should pay a supplemental penalty premium to offset their adverse selection costs. Or, have a one-time special enrollment during which current rules apply. Thereafter, there is no enrollment past the initial period during which a person becomes eligible without a penalty  

Not fair you say?  Why not?

Part B late enrollment penalty

In most cases, if you don’t sign up for Part B when you’re first eligible, you’ll have to pay a late enrollment penalty for as long as you have Part B. Your monthly premium for Part B may go up 10% for each full 12-month period that you could have had Part B, but didn’t sign up for it. Also, you may have to wait until the General Enrollment Period (from January 1 to March 31) to enroll in Part B, and coverage will start July 1 of that year. Source: Medicare.gov

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9 replies »

  1. That is why this law needs to be repealed. It cost too much and healthy people that do not qualify for a massive subsidy, chose to go uninsured. I do not believe there are many people waiting around until they get sick to enroll. The premiums are just too high for healthy people to buy in.

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      • But I am not waiting until I get sick to enroll. I will just pay out of pocket. I can still get health care. It is not like a doctor will not see me if i do not have insurance. I will get a much better price when the insurance company is not involved. Their are even some doctors that do not take insurance, go figure.

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      • Good luck getting a better price given docs give big discounts to insurance companies to be in network. They make up difference via direct pay.

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      • My nephew needed surgery on his shoulder, if he had insurance it would be $11,000. He told the Doctor he had to pay out of pocket. The surgeon charged him $6,000. This was in Dallas TX. So much for that insurance discount. The reason he could do it that cheap was he would make it up on insurance claims. That is what he told my nephew. Single payer with cost controls and rationing. Too many people go see the doctor when there is no reason, because co-pays are too low. Or they do not have to pay anything.

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      • That is what is wrong with health insurance, no cost controls. If the insurance company is stupid enough to pay it, because PPACA requires them to spend xx percentage of premiums. As long as they get their 20 percent profit, I guess they are ok with it. After all the insurance companies helped write the bill, that no on read, before they passed it.

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