What the hell is Gov. Cuomo (D-NY) doing in New York besides cutting a very expensive campaign commercial? (relevant information is 23+ minutes in)
1 million people in New York have gained health insurance under the Affordable Care Act. President Trump is trying to wreak havoc on our health care system, but we’re not going to let that happen in the State of New York.https://t.co/e2fWacsgko
— Andrew Cuomo (@NYGovCuomo) July 30, 2018
Gov. Cuomo just announced that he has directed Supt. Vullo to reject any individual market rate increase that included an increase to compensate for the repeal of the individual mandate
— Michael Capaldo (@consultbenefits) July 30, 2018
New York’s insurance regulators asked their ACA insurers to submit two sets of rates. The first rate would be a rate increased based on Federal policy as of December 1, 2017. The second was the incremental bump that accounts for the repeal of the individual mandate. Remember, the Congressional Budget Office projects that the individual mandate repeal will add roughly 10 points to whatever would have been filed using the December 1, 2017 rules. Insurers filed two rates. These rates varied widely. Some insurers had no rate increase attributable to the individual mandate. Other insurers had 80% of their total request attributed to the individual mandate.
And now Gov. Cuomo (D-NY) is saying that the incremental rate bump due to the loss of the individual mandate won’t be accepted.
WHATTTTTTTT……..
This is changing the rules mid-stream. Insurers can deal with bad policy if they have enough time to price in bad policy. They can’t deal with suprise bad policy.
I am assuming that the incremental bumps due to the individual mandate repeal are actuarial justified. Rates are supposed to be sufficient to cover all expected claims of the projected population with some cushion for adverse shock events. If an insurer is asking for 15% as an extra bump due to increased morbidity, there is room to argue that the right number is 9% and there is room to argue that the right number is 18%. 0% is probably not the right number.
If this is New York State policy, I expect some of the following reactions from QHP insurers:
- Refiling current rates to incorporate the individual mandate bump into the base rate with sleight of hand
- Screaming into the endless void of actuary’s tears
- Their lawyers talking to the state lawyers
- Withdrawals from the QHP market if the rates that some insurers need to cover the projected cost of a more morbid population won’t be approved
- The Governor saying that he extemporaneously misspoke
Yes, insurers are always evil bastards. On a good day, an insurer will be slightly less hated than chlamydia. Beating up insurers is a fun and politically popular thing to do. But rates have to be sufficient to cover claims or there will be no insurers willing to offer coverage over the long run.
UPDATE 1: IF there was a secret individual mandate bill that could be released in Albany tonight and passed tomorrow morning, this could not be destabilizing. I don’t think that bill exists.
UPDATE 2: Side note, the Basic Health Plan (NY ESSENTIAL PLAN) is the 138-200% FPL state run plan that is like Medicaid PLUS that New York uses instead of the QHP exchange. This could play havoc with its financing.
Additionally, the ability of some insurers to pull out may be limited as New York may link links Medicaid contracts with QHP participation.
AnonPhenom
Andrew Cuomo is not as narcissistically stupid as Donald Trump. But he is pretty phuckin’ narcissistically stupid.
Downpuppy
Couldn’t New York follow Mass & add their own mandate?
oldster
“On a good day, an insurer will be slightly less hated than chlamydia.”
Okay, then my ranking goes: Andrew Cuomo, chlamydia, insurers,
in order of more hated to less.
Mandalay
You just made my day with that. Thanks.
Geoboy
Chlamydia has just filed a class action lawsuit alleging emotional distress for being compared to insurers.
? Martin
I don’t get the hate for chlamydia here. It’s a hell of a lot easier to get rid of than either Cuomo or insurers.
TenguPhule
*SURPRISE*
Major Major Major Major
Ah, my future governor.
TenguPhule
@? Martin:
I beg to differ. Cuomo should be a lot easier to get rid of. He is but one man.
TenguPhule
I found this to be incredibly sad.
p.a.
DKos is right about one thing: more, BETTER Democrats.
Kylroy
You *know* what he’s doing – he’s punching a wildly unpopular target to gain a pop going into the 2018 election. And remember, this is New York, the state that had guaranteed issue Pre-ACA – optics are far more valuable to them than a viable market. I have a hard time seeing how anyone can possibly spin “Andrew Cuomo is pissing off insurance companies” in a way that hurts him. And whatever clusterfuck this wreaks on the NY insurance market will almost certainly be forgotten in four years.
HeleninEire
I think (nah I’m sure) I’m stealing this but.. Cynthia Nixon is making Andrew Cuomo the most liberal Governor in NY.
His father, with all his faults, DON’T “Vote Cuomo, not the homo” at me, would be mortified.
HeleninEire
@Major Major Major Major: You going for sure?
Major Major Major Major
@HeleninEire: I have three final round interviews next week so fingers crossed!
HeleninEire
@Major Major Major Major: WOOT. Queens, Forest Hills specifically is where you need to live. Trust me. I was there for 35 years. The best.
Major Major Major Major
@HeleninEire: much too far out. For queens we like Ditmars.
Geeno
This has EVERYTHING to do with Cynthia Nixon and the upcoming primary. These ads in the corner (mine are always Cuomo ads) make me crazy. Gaah.
TenguPhule
Trump golf resort wrecked special nature site, reports reveal
If what I’m sure will come as a shock to many people, Donald Trump lied to the government of Scotland and fucking wrecked the environment of the building site.
HeleninEire
@Major Major Major Major:”much? ” Forest Hills is 20 minutes on the E train from Manhattan. But be careful with Ditmars. That’s the R/Q train and well.
NYCMT
Two things –
1) We’ve been getting a nice annual rebate on our NY large group employer premium (first Oxford and then Cigna) because of loss-ratio since the ACA came into effect. NY insurers have dealt with guaranteed issue for many years and I cannot imagine that a single election year rate freeze is going to blow up any of the deeply capitalized incumbents who, as you have mentioned, also administer large portions of New York’s very extensive Medicaid system.
That being said
2) I’m not an agency action litigator but this kind of a priori decision by the governor to interfere with the functioning of the NY Insurance Commission in auditing rate requests and setting rates screams of the kind of arbitrary and capricious public agency act causing harm that would lead a class action of insurers to file for an Article 78 injunction against this direction, oh, tomorrow or Friday.
AnonPhenom
@Major Major Major Major:
FH is 13 minutes into Penn Station on the LIRR.
Astoria can’t beat that with a gyro (unless you’re working there).
David Anderson
@NYCMT: On point #2 I AM SO NOT A LAWYER much less a specialist in agency law, but my first thought as I read through the announcement was “arbitrary and capricious”
Major Major Major Major
@AnonPhenom: forgot about LIRR.
@HeleninEire: car-distance is also a real consideration.
ETA: Also proximity to river/boats and park, and positive psychological effects noted in myself from being physically nearer to tall buildings
TenguPhule
FEMA is apparently FUBAR.
Hurricane season is going to suck.
HeleninEire
@AnonPhenom: YUP. Thanks friend. Was in Queen’s for 32 years. 2 in Elmhurst, 16 in Rego Park and 14 in Forest Hills.
Ruckus
@Major Major Major Major:
You move to the city, you aren’t going to want a car. Let alone actually need one.
Major Major Major Major
@Ruckus: I currently don’t own, want, or need a car, but trains break or you want/need a cab for other reasons.
Will also be looking at Manhattan. A lot depends on salary offered.
ruemara
@HeleninEire: Forest Hills? No. LI! He can take the train in.
@TenguPhule: Potential sex partners. So the tech bro/entertainment hiring model.
HeleninEire
@Major Major Major Major: Car distance? No such thing here. . DO NOT BUY A CAR.
AnonPhenom
@Major Major Major Major:
They come for the excellent public schools. They stay ’cause…we’re just prettier than everybody else.
See also, Woodside (2nd place).
Major Major Major Major
@HeleninEire: I assure you that people in New York have been known to ride in cars. Famously even. They have a special color and everything.
jane says
This really blows, but it looks like Cuomo is about to obliterate Nixon in the primary. The polls numbers for Nixon are… not good. Horrible, actually.
HeleninEire
@ruemara: And then do what? Get in the subway unless he is working right outside of Penn station.
AnonPhenom
@HeleninEire:
Born in Hollis.
Raised in Woodside.
I’ll die in Parkside (FH)
NYCMT
Got a car in Forest Hills and use the LIRR/Subway. If you have a jones for Astoria go crazy but the WNR is hot garbage. I leave my apartment for the 7:19 LIRR at 7:02, arrive on the platform with five minutes to spare and am in Penn at 7:35. The value proposition is declining a bit since all of the middle class people are getting priced out of Brooklyn, but it’s a decent place and there’s a real nice bakery.
NYCMT
(Parking, on the south side of QB is also much easier than in any part of Astoria handy to the subway.
HeleninEire
@Major Major Major Major: yeah. I lived in NY for 54 years, Queens for 35 years. 7 miles from work. Took me 1 hour to get to work driving only cuz I could then park for free.
I am only trying to help you. You do not have to take it.
Cheers.
HeleninEire
@AnonPhenom: :) Thank you
NYCMT
The only draw back to Forest Hills compared to Astoria is the enormous energy barrier of traffic on a Friday afternoon if you’re punching out west or north for the weekend.
Major Major Major Major
I don’t think I’ve ever encountered a city with so little consensus around best neighborhoods before.
@HeleninEire: I appreciate it; I was just being a dick.
NY Robbin
@AnonPhenom:
Very sorry to miss yesterday’s meet up. Just couldn’t get myself to go into Manhattan on Sunday. :(
Born & raised in Kew Gardens & Kew Garden Hills; lived in Fresh Meadows, now live in Oakland Gardens. Queens is huge.
TenguPhule
@Major Major Major Major:
And display those cars for hours in traffic.
If NYC subways ever stop running, you’re doomed.
rikyrah
@TenguPhule:
Me too.
As someone who has 4 superb, and 2 ok Chinese restaurants within a 7 minute drive. ….yeah, this is sad…
rikyrah
@Major Major Major Major:
Everything crossed for you, 4M!!
Good luck!!
HeleninEire
@Major Major Major Major: Yup. Cuz NYC is not really a city of more than 8 million people. It is a series of neighborhoods that when you add them up equal a city of 8 million people. That is NYC. But it is the neighborhoods that are NYC. In was just trying to direct you to the best (my favorite) NYC neighborhood. But you do what feels best for you.
HeleninEire
@TenguPhule: This
maya
Chlamydia? I liked the Ventures more disguised version best.
https://www.youtube.com/watch?v=pyUcnoracMM
Steve in the STL
@Major Major Major Major:
Upper East Side. Everything else is garbage.
j/k!