Health Benefit Exchange New York – an Opinion.
What do you think about the new Health Benefit Exchange in New York? Three million people trying to get online and cannot access the web portal.
As a health insurance professional, I am uncertain about where this is going, just as you are confused about how it all works.
So who do you know who is considering going into the Health Insurance Exchange? Know someone who has a pre-existing condition who needs to sign up now?
Here is my opinion – the one’s so desperately seeking coverage thru the Health Insurance Exchange are the one’s who do have pre-existing conditions – I don’t blame them, as they have no coverage (probably) now.
The result down the road though, is the health insurance companies in the exchange will be taking on too much adverse risk. (I’ve seen this happen in the property & casualty world, a company will not credit score and have low rates, all of a sudden they are exiting the auto insurance market). While this is good for those who have these pre-exiting conditions, it cannot sustain itself.
Eventually (year 2?) you will see the rates rise 3x, 7x, 10x what they are now. For a politician to say this will lower health insurance costs is crazy – it won’t. Maybe the 1st year, when the unknown is upon us, wait until the claims start to pile up. One health insurance company cannot underwrite a risk based on a employee census and the next one take all who apply. It doesn’t make sense and won’t work.
For those with pre-existing conditions – I say good for you, for now. I hope this works. But be forwarned, the future brings not only much higher rates but much higher deductible – like $3,000 or $5,000 or $8,000. Just know that this will happen going forward.
I have no health insurance crystal ball but given these facts, it cannot make economic sense. Some proof is a lot of the big health insurance companies are staying out of the Health Benefit Exchange and keeping their health insurance model as is. They don’t want to play in the marketplace known as the “unknown”. I don’t blame them.
Health insurance definitely needed an overhaul, we all agree on that. I just don’t believe this Health Benefit Exchange is the answer or will work in the end. Most doctors agree too.
What do you think?
By Tom Larsen, licensed insurance professional