I was sure that this was the year my grandfathered health insurance plan would die. Some people have had their plan canceled twice. Yesterday I got a letter telling me that the 2016 premium would be 14% higher than last year. The consolation prize is that my grandfathered health insurance plan is better and cheaper than getting health insurance from the exchange. Although we were leaning toward going without health insurance in 2016, we opted to go another year of grandfathered health insurance to build up our health savings account.

I am puzzled why my grandfathered health insurance plan is still alive. When I see a report of a $2.5 billion risk corridor shortfall in 2014, I wonder what went wrong and how the insurance companies and our government officials are going to make the middle class pay for their mistakes. Since health insurance from the exchange does not become affordable for me until I earn $146,850 a year, I assume insurance companies have given up trying to entice healthy people to buy unsubsidized insurance from the exchange.  To avoid the dreaded adverse selection scenario the only solution left is to force these healthy people into the exchange by canceling their grandfathered health insurance plans. That will not be pleasant and may have an unintended consequence. When health insurance goes over 10% of a family’s budget, self insurance looks pretty attractive for pissed off, healthy people.