To The Daily Sun,
Politico reported UnitedHealth Group, the nation's largest health insurer, is having second thoughts about its participation in Obamacare. The company reported losses from the Obamacare insurance marketplaces. It also cut 2016 earnings projections after it reported projected future losses of $275 million on plans sold through the Affordable Care Act exchanges.
UnitedHealth Group had aggressively expanded its footprint in the PPACA marketplaces in each of the last two years and now sells plans in more than half of the states, holding about 6 percent market share. HHS officials downplayed the UnitedHealth announcement, touting healthy competition on the exchanges. The results don't lie. The HHS officials do.
This is not unexpected. The plan was to use Obamacare as a vehicle to create a single-payer system. Bankrupting insurance companies is a necessary step and a side benefit of the plan. Twelve of the 23 co-ops have failed and are either out of business or are winding down their affairs. The exchanges' first two years and the collapse of nonprofit co-op plans are largely the result of sicker-than-expected customers and too few participants.
It is true that Exchange customers can choose from roughly the same number of health plans as they did last year. But the collapse of more than half of the 23 co-op plans supported by federal loans is forcing 600,000 people to find new coverage in 2016 to avoid becoming uninsured. The remaining 11 co-op plans face a precarious future. They lost roughly $200 million in the first nine months of this year, nearly three times the level of losses they reported at the end of June, and that's according to a POLITICO Pro analysis of new financial filings.
Insurers are upset about the administration's announcement last month that it would only provide 12.6 percent of expected payments for a program designed to limit risk for insurers entering the new exchanges. They feel the federal government is pulling the rug out from under them. They were given assurances during passage of Obamacare to secure their support... which there was no intention of honoring. The program was never going to be actuarially sound.
Those points are in addition to the fact that Obamacare is the largest single tax increase in the nation's history, containing 13 new taxes projected to take $1.17 trillion out of the economy in the coming decade. The Supreme Court called it a tax increase ... not me. Additionally, the fact is Obamacare is a regulatory beast which has created upward of 100,000 pages of new regulations. Those regulations are strangling the economy and infringing our freedom yet we ignore what is going on. You want to know why the economy has not bounced back after 2008... look no further.
We need to send a full repeal of Obamacare to the president's desk. Contact Jeanne Shaheen at 202-224-2841, Kelly Ayotte at 202-224-3324 and Frank Guinta at 202-225-5456.
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