Author Archives: Reeve Conover

Can Liberal States afford their dream of single-payor system?

With California leading the charge, NY, NJ, RI and Mass are all throwing around the idea of a single -payor health care system in their legislatures.  It sounds so good – A majority of Americans feel the government should guarantee some kind of healthcare to citizens.  And we all wonder how we pay so much more, and get so much less?

But California is a state with an underfunded pension debt of $1 Trillion, according to a recent Stanford study.  The state budget is reportedly $290 billion, the estimate of what people pay for health care in the state is $367 billion – and the estimated price tag for a single-payor system is $400 billion!

So how are they going to pay for this?  112/193 House Democrats have signed a bill that would raise the taxes on “the wealthy.”  Another evaluation says that a 15% increase in payroll taxes would be needed.

A similar proposal in NY would require doubling, or more, that states current tax burden.  Vermont tried and the costs were too high, and Colorado voters rejected it when they learned of a 10% higher payroll tax.

The reason California’s is SO expensive is that it would “…pay for almost all of its residents’ medical expenses—inpatient, outpatient, emergency services, dental, vision, mental health, and nursing home care—and Californians would not have any premiums, copays, or deductibles.” Undocumented immigrants would be covered too.

And the outcome?  Its easy to present the big insurance companies as the evil demon – and they are to some extent.  But in this model, the government would decide what is, and is not, covered.  Hospitals and Doctors will have no choice but to accept whatever reimbursement rate the government decides on.  Physicians are already leaving Medicare and Medicaid  because of reimbursement rates, and a shortage of physicians is already felt in many areas – and its going to get worse.  IMHO the Veterans Administration, Medicare, Medicaid and the efficiency of have shown me its better in the private sector.

New York Individual Rate Increases

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New York State has announced the requested increases for individual health insurance.  Note that, typically, they decrease this on approval:

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Retirement Plan Trustee? Read this!

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SUMMARY-  Duke University may be liable:  they used multiple administrators, raising costs.  They had 400 investment options, limiting their ability to lower costs.  The Prudent Man rule comes into play again, and they failed to replace historically poor performing investments. – Reeve

While several claims were dismissed, several were allowed to move forward.

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New York Small Group Rate Increases

new york small group rate increase with arrow climbing bar graph

We are starting to get a look at small group rate increase filings in New York.  Note that these are only what was applied for – typically, New York State knocks these increases down.  We will find out the approved increases mid-summer.

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ObamaCare has increased rates by 105%

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An article in FoxNews on May 23 reports that premiums on exchanges for individuals rose 105 percent (on average) since 2013.  

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Reeve Conover is a Registered Representative. Securities offered through Cambridge Investment Research, Inc., a Broker/dealer member FINRA/SPIC. Cambridge and Conover Consulting are not affiliated. Licensed in SC, NC, NY, CT, NJ, and CA. - SIPC - Brokercheck