- United Health Group, the largest health insurer in the nation, said it may drop out of Obamacare due to massive losses
- CEO: “We cannot sustain these losses. We can’t really subsidize a marketplace that doesn’t appear, at the moment, to be sustaining itself.”
- Health & Human Services spokesperson: “Today’s statement by one issuer is not indicative of the marketplace’s strength and viability”
Obamacare is killing the largest health insurer in the nation and the administration asserts the program’s health? Our guess: the administration is cheering the potential death of a hated and vile business.
- America’s Health Insurance Plan, the nation’s largest insurance lobbying group, has called for bailouts for insurance companies participating in Obamacare
- The reason: massive losses by companies participating in the insurance marketplace
- The plan itself calls for collecting money from companies receiving “excess” profits and distributing money to those who are failing
The income redistribution plan known as Obamacare is failing. So their solution is to redistribute income. Perfect, right?
Via The Washington Times:
The nation’s largest insurer said Thursday it may drop out of Obamacare’s exchanges within two years, adding to a particularly gloomy outlook for the law as it enters its third year of full operation with customers facing rising premiums and the collapse of most nonprofit co-ops.
UnitedHealth Group said it will scale back its marketing for the exchanges in 2016, and will decide by midyear whether it’s worth participating in 2017, as it has seen its expected revenues drop precipitously.
The company now projects earning $425 million less in the fourth quarter of 2015 as customers it had anticipated have failed to sign up for the controversial health law.
“We cannot sustain these losses,” CEO Stephen J. Hemsley told investors. “We can’t really subsidize a marketplace that doesn’t appear, at the moment, to be sustaining itself.”
UnitedHealth insures about 550,000 customers on the Affordable Care Act’s web-based exchanges, where customers who don’t have Medicare or Medicaid or get insurance through their work can shop for coverage.
The company sat out the first year but ramped up participation for 2015, and was bullish as recently as last month.
Read more here…
America’s Health Insurance Plans, the main industry lobbying group, on Thursday called on the federal government to bailout insurers for losses incurred through participating in Obamacare.
At issue is a provision within the law known as the risk corridors program. Under the program, the federal government is to collect money from health insurers doing better than expected and use those funds to provide a federal backstop to other insurers who incur larger than expected losses from rising medical claims. Republicans, fearing that this could turn into an open-ended government bailout, included a provision in last year’s spending bill that limited the program, requiring the Department of Health and Human Services to pay out only from the pool of money collected, rather than supplementing it with other sources of government funding.
Now, because there have been industry-wide losses from Obamacare, there isn’t enough money to go around. And that has insurers nervous.
“We’ve been very clear with the administration about the serious challenges facing consumers and health plans in this exchange market,” said Marilyn Tavenner, the current chief executive of AHIP who previously ran the implementation of Obamacare as head of the Centers for Medicare and Medicaid Services. “Most recently, nearly 800,000 Americans have faced coverage disruptions as a result of the significant and unexpected shortfall with the risk corridors program. When health plans cannot rely on the government to meet its obligations, individuals and families are harmed as a result. The administration must act to ensure this program works as intended and consumers are protected.”
Read more here…