Here are some thoughts about LD1333, the Republican bill to overwrite Maine’s insurance law with an insurance lobby grab-bag of bad ideas.
I’m a young guy in Portland.
Let me assume that the average Maine Republican is older, more rural, and based in a more northern location than myself in the state.
They just voted to lower my health insurance costs and raise their own.
I tried to tell them no. I tried to say, hey, I’m okay paying a little bit more. I think older people need affordable health insurance. I’d like to have it myself when I’m that age. Right now, I don’t worry so much about health costs.
They didn’t listen. Here is what the Bureau of Insurance says about the Republican bill:
•14.9% of the Individual Market will see an average rate increase of 29.9%•42% will receive premium increases of some amount; the average age of the policyholders who will see rate hikes is age 48•Maine people living in the North will experience on average a 19% rate increase•Maine people living in Down East will experience a 22% rate increase
•Maine people who want to keep the insurance policy they currently have will see price increases rise as high as 170 percent over the next 3 years
Are they being selfless? Are they saying, “Listen you young whippersnapper. We understand we older people have higher costs. We understand we are shifting money from the younger to the older to help us afford what we need. We’re done with that. We are going to pay our own way. You keep your money, son.”
Probably not. They’re just dumb. They really think letting health insurance companies charge more for older people is actually going to help Maine’s older population. Why? I have no clue.
Read what the Bureau of Insurance says. Increases will be centered on people who are 48 years old, or thereabouts. Those living in northern Maine will average a 19% increase.
A 19% increase!
Hey, it’s no skin off my back.
But why would you do this to yourself, Mr. Older Rural Northern Republican?
Fun fact: The Republican bill would allow insurance companies to charge people 5 times more for being old, but only 1.5 time more for being a smoker.
You don’t choose to be old. You do choose to be a smoker. But smokers are far more protected than those between ages 40-65.
Fun fact: While rate increases for smoking are limited, there would no longer be any limit to rate increases for occupation, geographic location, or family status. Single, Washington County fishermen will be hit hard.
In general, more rural people with more “hands-on” physical jobs will see rate increases so desk jockies in Portland can see their rates go down.
Fun Fact: While Republicans are throwing around the “$4 per head” tax as the funding mechanism to cover people who are denied regular insurance by insurance companies, there appears to be a second mechanism that would allow unlimited tax increases on insurers if the Guaranteed Access Plan does not have enough money to cover all those in the high risk pool.