The Obamacare lies that we have been fed are coming home to roost. Nancy Pelosi said if we passed it we would find out what was in it. Well Nancy, we still don’t know because you keep changing the rules and exemptions. And Mr President, you said that we would pay $2,500 less a year while keeping our plan and our doctor. That has gone in the toilet as well. Now the insurance companies are seeing the death spiral on the horizon. They call the program “Unsustainable.” That means we cannot continue as is. What is going to happen? It will cost you more because corporate survival is Rule Number One. Rule Number Two would be political survival at any costs.
Insurers warn losses from ObamaCare are unsustainable
As Written By Peter Sullivan at The Hill:
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.
Insurers have been pounding the drum about problems with ObamaCare pricing.
The Blue Cross Blue Shield Association released a widely publicized report last month that said new enrollees under ObamaCare had 22 percent higher medical costs than people who received coverage from employers.
And a report from McKinsey & Company found that in the individual market, which includes the ObamaCare marketplaces, insurers lost money in 41 states in 2014, and were only profitable in 9 states.
“We continue to have serious concerns about the sustainability of the public exchanges,” Mark Bertolini, the CEO of Aetna, said in February.