Politics Insurers warn losses from ObamaCare are unsustainable

[Denny Crane]

http://thehill.com/policy/healthcare/276366-insurers-warn-losses-from-obamacare-are-unsustainable

Health insurance companies are amplifying their warnings about the financial sustainability of the ObamaCare marketplaces as they seek approval for premium increases next year.

Insurers say they are losing money on their ObamaCare plans at a rapid rate, and some have begun to talk about dropping out of the marketplaces altogether.

“Something has to give,” said Larry Levitt, an expert on the health law at the Kaiser Family Foundation. “Either insurers will drop out or insurers will raise premiums.”

While analysts expect the market to stabilize once premiums rise and more young, healthy people sign up, some observers have not ruled out the possibility of a collapse of the market, known in insurance parlance as a “death spiral.”

In the short term, there is a growing likelihood that insurers will push for substantial premium increases, creating a political problem for Democrats in an election year.

 

[MarAzul]

Insurance in the form specified by Obama is not a viable stand alone commodity. Insurance only works when the participants are a healthy low risk group sharing the cost of the occasional
high loss, with room for a reasonable profit to the provider. The private sector product that worked for years is now illegal, with the survivor unworkable for either the participants or the provider.

Self insured employers have alway been able to select a low risk employee to cover and avoid the profit associated with a provider. Under the new rules, it is unclear whether this will remain possible.

 

[SlyPokerDog]

Insurance in the form specified by Obama is not a viable stand alone commodity. Insurance only works when the participants are a healthy low risk group sharing the cost of the occasional
high loss, with room for a reasonable profit to the provider. The private sector product that worked for years is now illegal, with the survivor unworkable for either the participants or the provider.

Self insured employers have alway been able to select a low risk employee to cover and avoid the profit associated with a provider. Under the new rules, it is unclear whether this will remain possible.

You're right, insurance is not the best way to provide health care.

 

[rasheedfan2005]

"Unsustainable"

Watch how much the word is used in the media.

 

[MarAzul]

You're right, insurance is not the best way to provide health care.

Well it worked for whole lot of people. But the Government can't interfere especial if they want to make it fair. Everyone has nothing then.

 

[rasheedfan2005]

You're right, insurance is not the best way to provide health care.

If we could make ALL insurance optional instead of mandating people have it insurance companies would die and hopefully my god damn tv wouldnt be drowning in aflac/gieco/state farm/all state/progressive commercials.

 

[Denny Crane]

http://hosted.ap.org/dynamic/storie...ME&TEMPLATE=DEFAULT&CTIME=2016-04-19-09-14-34

UNITEDHEALTH TO TRIM ACA EXCHANGES TO 'HANDFUL' OF STATES

UnitedHealth, the nation's biggest health insurer, will cut its participation in public health insurance exchanges to only a handful of states next year after expanding to nearly three dozen for this year.

CEO Stephen Hemsley said Tuesday that the company expects losses from its exchange business to total more than $1 billion for this year and last. He added that the company cannot continue to broadly serve the market created by the Affordable Care Act's coverage expansion due partly to the higher risk that comes with its customers.

The state-based exchanges are a key element behind the Affordable Care Act's push to expand insurance coverage. But insurers have struggled with higher than expected claims from that business.

(A $billion here, a $billion there. Pretty soon it adds up to real money. Thanks Obama.)

 

[e_blazer]

Well there are only 30 million or so of us stuck with ACA coverage, so what's the big deal?

 

[dviss1]

Um... Fuck Insurance cartels?

 

[dviss1]

Did the Republicans write the Mandate or not Denny?

 

[Rastapopoulos]