Update: HHS says it’s an obligation to bail the insurance companies out. Sound familiar…”too big to fail.”
UnitedHealth Group, the largest insurance company in the U.S., on Thursday slashed its earnings outlook, citing new problems related to Obamacare, and told investors it may exit the program’s exchanges.
The release added that, “UnitedHealthcare has pulled back on its marketing efforts for individual exchange products in 2016. The company is evaluating the viability of the insurance exchange product segment and will determine during the first half of 2016 to what extent it can continue to serve the public exchange markets in 2017.”
That’s correct…insurance companies exist to make money for stockholders. Barry promised a lot of stuff, but it doesn’t look like it is gonna be a possibility to keep spreading everyone’s wealth in order to insure everyone. People are angry…their plans may not have pre existing issues used for denials, but they are offering less to makeup for that. Nothing is free in life except the air that you breathe.
Insurers have had trouble signing up young and healthy individuals on the Obamacare exchanges, which is necessary to offset the costs of covering older and sicker enrollees. This has forced insurers to hike premiums, raise deductibles, and slash the number of doctors and hospitals offered on its plans. Meanwhile, the Obama administration has cut its enrollment expectations for 2016 to about half of what they were when the the legislation became law.
The year 2017 is significant for insurers, because that’s the year when several programs designed to mitigate risk for insurers through federal backstops go away. The hope was that those programs would act as training wheels for Obamacare in its first few years of implementation, but after that, the insurers were supposed to be able to thrive on their own. UnitedHealth’s statement suggests otherwise.
Those who think their current health insurance plans are too expensive should brace themselves for 2016, at least based on the recent predictions of one healthcare executive. Health insurance companies are likely to demand even more money in the coming year from people seeking to buy healthcare, Kim Holland, the director for state affairs for Blue Cross Blue Shield Association, warned earlier this week at a health insurance conference, Bloomberg’s Bureau of National Affairs reported Thursday.
“You cannot have every doctor in your network, very low copays, broad benefits and lower costs. It just can’t work that way,” Holland said, calling such demands, including for insurance companies to charge lower premiums or monthly fees that people pay for to have insurance coverage, “unrealistic.”
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