Read the following. Do you think this is a gotcha for the insurance company? Not really. They used an assumption that was challenged, but only time will tell who was right and if the insurer was correct, the following years premiums must make up the loss.
Now you may say, they were only trying to make more money, but why do that and make your plans less competitive?
But what is really important and what reflects the real problem for Obamacare and other insurance faces is the 37.3% premium increase that was improved. Yikes‼️
The California Department of Managed Health Care challenged Anthem’s estimates for future medical costs, in particular its prediction of a 30 percent jump in pharmacy expenses for the individual market — nearly double the estimates of two other big insurers and out of line with industry trends nationally.
As a result of the department’s intervention, the nation’s second-largest health insurer shaved 3 percentage points off its 2018 rate increase for individuals and families, still leaving a hike of 37.3 percent. That increase is the second-highest — after Molina Healthcare — among the 11 insurers that sell in the Covered California exchange. Anthem also cut its rate hike on small businesses by more than half, to 2.5 percent. Source:Kaiser Health News