Posted on 02/06/2016 5:26:08 AM PST by Kaslin
Actually, United was forced to drop it’s excellent Medicare Advantage plan and promote the ordinary Medicare insurance where is no chance of loss. AARP was their largest sales agent
My medical group dropped United because they couldn’t pay their bills.
The insurance companies are not making money - they’re losing their shirts. The risk corridor program was to stop that, but believe it or not, our enabling Congress actually did something about Obama trying to pay the insurance companies for their losses out of taxpayer funds rather than the risk corridor fund which was not enough to cover their losses. Last year the insurance companies got 13% of what they asked for. The same language was put in the budget again for this next year and the insurance companies will be eating major losses again ..... this is why they are getting out of the Obamacare plans because enrollment is 38% of the 75% participation they need to make the risk pools work.
Enrollment this year was horrible, regardless of what HHS via Burwell & Obama say (they say they “knocked the lights out” - outright lying). Thus the premiums are going up - the healthy & middle income families who simply cannot afford Obamacare, are not signing up despite the penalty. The business model for Obamacare does not work & it is crashing. Restricting the risk corridor payments to that fund (insurance companies making money pay in for those that don’t) and keeping taxpayers funds out of the “payoff” (which is what it is) is crashing Obamacare from the inside out along with the poor enrollment.
The individual and employer mandates are huge cash cows for the industry. I imagine every business in this country would clamor for a Federal law that required people and employers to buy the products they sell.
The downside is that insurers pretty much have to insure anyone who comes to the door. This is like requiring an auto insurance company to offer an "affordable" policy to someone with four DUI convictions and nine license suspensions on his record.
They provided the very valuable cover (as opposed to coverage) to allow the Obamists in the media to present it as a reasonable and workable plan. Fellow travelers at best, or those selling the rope to hang themselves at the worst.
Some states do have that. It is called Assigned Risk.
Like ALL services, the ‘quality’ one gets is (usually) correlated to the amount of $$ one spends.
Course, the govt has had their dirty, little, filthy, stinking hands in the perversion of the markets for so long now, nobody can 2+2 together to understand that INSURANCE != every splinter/sniffle/booboo. No SH!T, Sherlock, that the $$ has skyrocketd since this ‘cover EVERYTHING’ FUBAR went into (partial) effect.
Wait until it REALLY kicks in
bkmk
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.