Comment: Wellpoint’s filing suggests it expects to lose 13% (and receive an offsetting 10.8% tax-payer bailout) on its Obamacare exchange policies (rough figures). This implies Wellpoint would have to hike rates an additional 16% to achieve a 3% profit on these plans.
“The Los Angeles Times reported today on an average 16% increase in the premiums charged for grandfathered health plans sold in California this year. The hikes will take effect April 1 for some 300,000 consumers who currently have health plans they purchased in the individual market. Some premiums will rise as much as 25%. That’s the headline. But even more news was buried in what Wellpoint said about the rates charged on its non-grandfathered plans.”
[...] “A closer analysis of the rate filing shows that Wellpoint is assuming in its proposed rates that its ObamaCare-compliant health plans (sold both on and off the exchange) will be very unprofitable for 2014, but for the anticipated recoveries from the reinsurance fund. Wellpoint’s projections for non-grandfathered plans includes expected reinsurance recoveries of 10.8% of premium.” (emphasis added)
New Filing Shows How Much Money ObamaCare Plans Are Losing
Scott Gottlieb, M.D, 1/31/2014