Tag Archives: Health Insurance

News

Unionized UPS to drop health insurance for 15,000 spouses because of Obamacare

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The Washington Times reports. (H/T Letitia)

Excerpt:

Citing Obamacare, the United Parcel Service plans to remove 15,000 spouses from its health care plan because they are eligible for coverage elsewhere.

Rising medical costs, “combined with the costs associated with the Affordable Care Act, have made it increasingly difficult to continue providing the same level of health care benefits to our employees at an affordable cost,” UPS said in a memo to employees, Kaiser Health News reported.

UPS expects the move will save about $60 million a year, company spokesman Andy McGowan said.

The health law requires large employers to cover employees and dependent children, but not spouses or domestic partners, Kaiserreported.

On Tuesday, Forever 21 Inc. became the latest national company to cut employee hours to counter the impact of Obamacare, the Atlanta Business Chronicle reported.

The Heritage Foundation has more on that Forever 21 story.

Excerpt:

A leaked memo shared last week on social media with the hashtag #Never21 proves the company capped some full-time workers at 29.5 hours a week as of August 18, resulting in a loss of the health coverage and other benefits offered to full-time workers.

Conservatives have warned that the provision under Obamacare defining a full-time worker as one who works 30 hours a week or more incentivizes businesses to drastically cut workers’ hours to avoid the heavy financial burden of mandatory insurance requirements under the bill.

Forever 21 joins several fast food chains that have cut workers’ hours to less than 30 in the past few months, ahead of the provision taking effect.

I’ve blogged about several of these companies who are having to adjust to Obamacare, but actually, this is not happening to a company here and a company there.

Reuters explains:

U.S. businesses are hiring at a robust rate. The only problem is that three out of four of the nearly 1 million hires this year are part-time and many of the jobs are low-paid.

Faltering economic growth at home and abroad and concern that President Barack Obama’s signature health care law will drive up business costs are behind the wariness about taking on full-time staff, executives at staffing and payroll firms say.

Employers say part-timers offer them flexibility. If the economy picks up, they can quickly offer full-time work. If orders dry up, they know costs are under control. It also helps them to curb costs they might face under the Affordable Care Act, also known as Obamacare.

Now on first glance, it would seem that conservatives should be happy because the leftists who voted for Obama are finally getting what they deserve.

However, my conservative deist friend ECM says “not so fast”:

This would be entertaining, but this is a feature, not a bug.

Remember: they passed the present Ocare on the premise that 44-million were uninsured (never mind how bogus that stat was/is)–now that the ranks are being swelled by the self-same act, there will be tens of millions more which, as the left is wont to do, will be used as ‘proof’ that we need single-payer, not that Ocare wrecked a working market for healthcare.

(No, it doesn’t matter that everyone against this law said *exactly* this would happen, because, to the left, cause and effect and accurate predictions–despite their pretensions at being scientifically-minded–are never valid unless it confirms their biases, so they’ll just blame ‘big business’ and the bogeyman for why it’s going in exactly the direction the sane said it would. The media will reinforce this and, pow, single-payer.)

So laugh while you can–it won’t be funny for long.

I think that this could go either way. If the media covers up for Obama because they want single payer, and the conservatives pick someone like Mitt Romney instead of Bobby Jindal or Paul Ryan or Ted Cruz, then we are going to lose. We are going to lose because people will blame the decisions of private businesses instead of the Obamacare that forced them to make those decisions.

We still have the 2014 elections coming up. The public needs to have a good taste of what Obamacare does in order to understand what they’re getting. If they still choose to elect Democrats after seeing the effects of socialism, then they’ll have to live with socialism. I’m fine with it. I don’t plan to be working when the bill comes due, and I’m not going to be paying for big houses and college tuition, either.

News

Blue Cross, Aetna, United, Humana opt out of Obamacare exchanges

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From CNS News.

Excerpt:

Major health insurance companies – Blue Cross, Aetna, United, Humana – have fled the Obamacare health care exchanges in various states, which are scheduled to start on Oct. 1.

[…]The ACA requires every American to have health insurance, or pay a penalty.  Individuals who are not covered by their employer can enroll in the state or federal government-run health care “marketplace,” which will provide subsidies to individuals between 100 and 400 percent of the poverty line.

Aetna, a fortune 100 company with $34.2 billion in revenue, has pulled out of public exchanges in three states, and will not be part of the individual health insurance exchange in its home base, Connecticut.

[…]Aetna will also not participate in California’s exchange, and a spokesperson told CNSNews.com that the company never intended to do so.

“We did not withdraw exchange plans in California, as we never planned participation nor filed [Qualified Health Plans] QHPs to participate in the California exchange,” a spokesperson said.

Anthem Blue Cross has withdrawnfrom its bid to participate in the state’s small business exchange, as well.

United Health Group, the largest health insurer in the United States, has also taken a pass on the Golden State’s individual insurance market under Obamacare.

As a result, roughly 8,000 policyholders will be left searching for new insurance.

[…]Only three companies remain in Connecticut’s “Access Health CT” exchange, following Aetna’s departure.

Similarly, only five plans are participating in the exchange in Georgia, after Aetna and Coventry Health Insurance dropped out last week.

The Savannah Morning News noted that this will “leave residents of some parts of the state with limited choice.”

[…]Two of the three largest health insurers in Wisconsin will also not participate in the state’s online marketplace under Obamacare, it was announced on Wednesday.

But I thought that Obama said that people who liked their current health care plan could keep it?

“No matter how we reform health care, we will keep this promise: If you like your doctor, you will be able to keep your doctor, period,” Obama said on June 15, 2009.

“If you like your health care plan, you will be able to keep your health care plan. Period,” he said.  “No one will take it away. No matter what.”

That promise, however, has been revised by the Department of Health and Human Services (HHS), which now says, “you may be able to keep your current doctor” in the health insurance marketplace.

Oh I see, once the election is over, then the truth comes out. But it doesn’t matter, because Obama already won the election on the strength of the lie.

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News

Aetna pulls out of Obamacare exchanges in Maryland – can’t operate at a loss

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Left-leaning Reuters reports on the implementation of Obamacare in Maryland.

Excerpt:

Aetna Inc pulled out of Maryland’s health insurance exchange being created under President Barack Obama’s healthcare reform law after the state pressed it to lower its proposed rates by up to 29 percent.

Under the law, often called Obamacare, each U.S. state will have an online exchange where Americans will be able to buy insurance plans, starting on October 1. The government is counting on about 7 million people to enroll next year for this insurance, many of whom will qualify for subsidies.

The success of the exchanges, as well as the expansion of the government’s Medicaid program for the poor, are key elements in the political battle between Republicans and Democrats. State officials say the price of the new insurance plans will help determine whether enough people sign up.

In an August 1 letter sent to the Maryland Department of Insurance, Aetna said the state’s requirement for rate reductions off its proposed prices would lead it to operate at a loss. The rate reductions include products from Aetna and Coventry Health Care, which it bought this spring.

“Unfortunately, we believe the modifications to the rates filed by Aetna and Coventry would not allow us to collect enough premiums to cover the cost of the plans, including the medical network and service expectations of our customers,” Aetna said in the letter to insurance commissioner Therese Goldsmith.

According to online documents, Aetna had requested an average monthly premium of $394 a month for one of its plans and the agency had approved an average rate of $281 per month.

Aetna Chief Executive Officer Mark Bertolini said earlier this week during a conference call to announce financial results that it was closely looking at its plans for the exchanges since buying Coventry.

Like most other large U.S. insurers, Aetna has taken a cautious approach to the new products which must include a broader set of benefits and be sold to all people regardless of their health.

Doug Ross blogged about the cost of health insurance in Ohio a while back. He linked to this article from Forbes magazine.

Excerpt:

[O]n Thursday, the Ohio Department of Insurance announced that, based on the rates submitted by insurers to date, the average individual-market health insurance premium in 2014 will come in around $420, “representing an increase of 88 percent” relative to 2013…

[…]It’s called “rate shock,” but it’s not shocking to people who understand the economics of health insurance. In August 2011, Milliman, one of the nation’s leading actuarial firms, predicted that Obamacare would increase individual-market premiums in Ohio by 55 to 85 percent. This past March, the Society of Actuaries projected that the law would increase premiums in that market by 81 percent…

[…]What are the drivers of the increase? According to Milliman, the two biggest drivers are (1) risk pool composition changes, such as forcing the young to subsidize the old, and the healthy to subsidize the sick; and (2) Obamacare’s required expansion of insurance benefits, particularly its mandated reductions in deductibles and co-pays…

Doug makes the point that we already knew what happens to the cost of health care when government imposes price controls – we get a shortage of health care, and prices go up. We knew that. Obamacare is nothing but a further intervention into free market to impose more price controls. Guess what? It’s going to do the exact same thing. The only way out of this mess is going to be for government to ration care by reducing the number of doctors and delaying treatment with waiting lists – exactly what happens today in Canada.

During the election campaign, Obama promised everyone that his health care policy would result in lower premiums. What reasons did we have to believe him when he said that? Did he have a record of competence on health care policy, like Louisiana governor Bobby Jindal does? Did he have a career in private sector health care to draw on, like Mark Bertolini does? No. Obama had nothing but talk. And we were too busy watching television to care.

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