Obamacare: Comparable cheap insurance up 200% in Ohio; Calif. insurers cut corners by reducing access to providers - See more at: http://conservativeintel.com/2013/06/13/obamacare-comparable-cheap-insurance-up-200-in-ohio-calif-insurers-cut-corners-by-reducing-access-to-providers/#sthash.mHvr2kxo.dpuf

Obamacare rate shock, already a major problem in California, has spread to Ohio as well, where premiums will now be 88 percent higher. As the Washington Examiner’s Phil Klein notes in his column today, the average comparison may not be the best measure. But a comparison of the cheapest reasonably comparable plans available — the threshold price for becoming insured — does not come out well for Obamacare with an increase of roughly 200 percent.

In the meantime, back in California, the Los Angeles Times notes that one of the state’s biggest insurers, Kaiser Permanente, submitted a surprisingly uncompetitive bid, such that its “Silver” plans are the most expensive or second-most-expensive in 12 of the 18 Obamacare-designated regions where it will be selling.

Some are criticizing Kaiser of throwing the game in an attempt to minimize sign-ups this year. That way, the sickest people who jump on Obamacare quickly will go to other insurers. The company denies this, asserting that “it was as surprised as others” when rates were announced and so many of their competitors had outbid them with lower rates.

But either way, here’s an important detail about how other insurers beat Kaiser with their bids: Forbidden from stripping down the benefits below those required by the new law, they instead rationed care by reducing the number of doctors and hospitals available to new sign-ups on the exchange. Otherwise, the already-increased Obamacare premiums would probably be even higher: 

Despite its higher rates, Kaiser said it wants to enroll a large number of people in the state exchange. It blamed its lackluster showing, in part, on rivals offering cheaper plans that give consumers far less choice of doctors and hospitals.

Blue Shield of California, for instance, is offering 36% of its physician network in Covered California plans…Kaiser is a unique healthcare system because it operates its own hospitals, physician offices and insurance company for its 9 million members nationwide.

“Blue Shield or Anthem could be a little more selective in putting together a network for this new market. Kaiser is one size fits all,” said Marian Mulkey, director of the health reform and public programs initiative at the California HealthCare Foundation. “The question now is will people find Kaiser attractive enough compared to their other options. This could put pressure on Kaiser to be less expensive.”

Yes, it could put downward pressure on prices. But perhaps Kaiser has hedged itself against premium increases across the board, which all of their competitors will find necessary and/or profitable (thanks in part to Obamacare’s subsidies) in 2015 after taking on a new crop of older and sicker patients at artificially low rates. If the young and healthy do in fact forgo coverage and opt to pay the health care “tax,” those rates will rise even faster.

- See more at: http://conservativeintel.com/2013/06/13/obamacare-comparable-cheap-insurance-up-200-in-ohio-calif-insurers-cut-corners-by-reducing-access-to-providers/#sthash.mHvr2kxo.dpuf