IMPORTANT READ

The individual annual election period is set to begin on November 1st and run through December 31st.

In Nevada the price increase is substantial, and many may decide the cost isn’t worth the return on investment. There is a very sound business reason for this high premium increase and thought I’s review it and explain.

Nevada insurance companies have increased the monthly premiums between 26% and 40% depending upon the carrier. As a consumer that is not a good thing. Hang onto your hat’s folks because the high premium increase is based on not having an answer whether the federal government will continue the subsidies to individuals based on income. Once the subsidies are returned and the probability is it will happen with a time limit of perhaps two more years; the insurance companies will reduce their rates.

These subsidies are substantial and impact on the rates the end user pays. Since Congress has shut down the government these decisions cannot be made, however, from a practical point of view Congress when back in session must keep those subsidies for our citizens.

Once Congress settles their disputes, they have no choice but to continue the subsidies or face removal from office. That’s how critical this is for all Americans.

The public is unaware of the reasons behind the rate increases and I would encourage all brokers to contact their clients and explain what is going on and before they cancel their insurance they should wait until Congress and government shutdown is resolved. While it may take more time to resolve; the rate increases are for January 1st. So, there is plenty of time assuming the government shutdown is resolved.

The rate increases are necessary since the basic premise of Obamacare is flawed. It is flawed because insuring everyone means the insurance companies must insure the sick with along the healthy. All insurance plans are based on gold, silver and bronze plans. The gold plans are an 80/20 split with 80% paid by the insurance company. Silver is a 70/30 split and bronze is a 60/40 split.

The real issue is that the very sick pay the highest premiums because they buy the 80/20 plans, so their portion is only 20%. Meaning the insurance company is footing 80% of that bill.

Also believe that part of the problem is that Congress has their own plans, not Obamacare. Wonder why that is? Obviously because their plans are better than Obamacare. It also transcends to Medicare and Social Security, as Congress has their own plans which are better than ours. To really fix the problems we all, Congress included, must be on the same plans.

Self-preservation is a major issue and if Congress were on our plans, those plans would be fixed

immediately.

This issue will not solve itself. Congress will not do anything because it doesn’t benefit them.

The answer as I have written before is a Constitutional Convention where the states force Congress on Social Security, Medicare and Obamacare. That is the only way to fix the problems.

I hope this information is useful and if anyone has questions, please contact me via phone or email and I will respond quickly.

Also, you may want to take a look at Medicare 2025 Information. 2026 Medicare Information coming soon.

The Barend Agency Inc.

Len Barend, Broker

Cell:702-250-2200