Thursday, just hours after giant insurer UnitedHealthcare said it’s losing money selling ObamaCare plans and will probably exit the health exchanges next year, the Obama administration quietly promised to bail out insurers for their losses. That will be done with taxpayer dollars of course.
How dare he cover up his failures, the failure of the Democratic Party, and the massive failure of Obamacare by wildly spending taxpayer dollars. We borrow 40 cents on every dollar. We have to borrow to do this, adding to the deficit that he promised he wouldn’t do.
Most insurers are losing money and 21 of the 23 co-ops lost money. Twelve are now going or have gone defunct. These co-ops are at their maximum enrollment or near to it and are losing money. There is no hope for them. They too are funded with taxpayer dollars.
The insurers are joining with Obama to lobby Republicans in Congress for a bailout.
United Health announced losses of $425 million on ObamaCare plans, and CEO Stephen Hemsley said, “We cannot sustain these losses,” and “we saw no indication of anything actually improving.”
Facts from the Chicago Tribune:
- Blue Cross and Blue Shield of Illinois, the state’s dominant network, has raised its 2016 premiums an average of 17.8 percent on policies sold through the Obamacare online marketplaces.
- Blue Cross and Blue Shield of Illinois has dropped its most popular PPO plan and now offers customers a narrower PPO that does not include some of the most prominent hospital systems in the Chicago area.
This is going on throughout the nation.
Blue Cross lost about $280 million in its exchange-based business in 2014. The consulting giant McKinsey & Co. estimated that the insurance industry lost $2.5 billion on Obamacare policies in 2014. About two of every three health care payers lost money; many of the rest eked out small profits, the Tribune reported.
Federal health officials estimate that 2016 enrollment under Obamacare will be close to 2015 enrollment which means there won’t be any more money coming in.
In fact, almost all of the increase in enrollment can be explained by the Medicaid expansion which is fully funded by taxpayers.
Here in New York, many people on private insurance lose it in November, after they’ve met their deductibles. They then get insurance for a month, but they have to pay the deductibles again. They then have to get another insurance plan in January and start with the deductibles a third time. It’s insane and it’s only one example of the mess this bill is in.
Obama’s Department of Health and Human Services sent a letter to panicky insurers Thursday, vowing to go to Congress for full funding to reimburse insurers for their losses.
The risk-corridor program shouldn’t be used to funnel taxpayer money to insurers. After demonizing insurers, Obama’s now their biggest benefactor.
This is part of his socialist legacy and he won’t do a thing to change it as it needs to be changed. He will keep pouring tax dollars and money from the Feds printing press into it and pretend it’s working while attacking Republicans and blaming them for the mess though they had nothing whatsoever to do with Obamacare aka – ironically – The Affordable Care Act.
He will continue to say “it’s working” and “it’s here to stay” as it dies a slow death and possibly puts us on a path to a worse nightmare – universal healthcare.
Best to pray a Republican wins in November 2016.
He’s so delusional and illusionary. I think he’s on something.