Heathcare exchanges working even better than advertised: NY insurance premiums see 50% cost decrease.

[notyoueither]

No, not all of them.

So the regulations to fine people who do not buy insurance are not in effect. What will happen to these lower rates when they do come into effect?

[Dinner]

So the regulations to fine people who do not buy insurance are not in effect. What will happen to these lower rates when they do come into effect?

The rates are locked in for everyone for at least one year but in the following fall each company gets to revise their rates based on changing conditions and the hope is that the increased competition will continue to keep prices lower than they other wise would be. Also the other big thing which changes each year is people have to file their yearly tax return and depending on their income they may or may not qualify for a subsidy (or even just part of a subsidy since it is on a sliding scale based upon income).

The really big risk is what if all of those new customers never show up. Theoretically they could chose to just pay the fine and not buy health insurance because they think nothing bad will ever happen to them or what ever. Due to the subsidies though it seems certain that there will at least be several million new people entering the insurance market as they can now actually afford to buy health insurance. Obviously the more people in the pool the better because then the per unit cost goes down as risk is shared more widely.

[DaShi]

I just want to say that I work with a couple of health economists who are not surprised at all that the exchanges are so successful. One of them has a noble prize and the other is Jesus. So I'm now an expert.

[Wezil]

Jesus owes me $10.

[Sava]

Yeah. You won't see that money again.

[self biased]

MY PREMIUMS DOUBLED. :WIGLAF:

[H Tower]

So the regulations to fine people who do not buy insurance are not in effect. What will happen to these lower rates when they do come into effect?

more people in the exchanges, larger pool of people to cover the unhealthy, lower premiums for all. At least that's the theory.