Tag Archives: Prices

News

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

1 Comment

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.

Related posts

News

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

2 Comments

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.

Related posts

News

Five Guys franchise owner says Obamacare will force him to raise prices

3 Comments

Five Guys is my favorite place to go for a reasonably-priced cheeseburger. But the reasonable prices might be changing now.

Excerpt:

Business owners across America say they’re experiencing poor sales, holding back hiring, and planning layoffs because of “Obamacare,” or so says the Federal Reserve’s latest Beige Book (an overview of the business conditions in each of its 12 districts).

But in case you don’t trust the Beige Book’s anecdotal reporting, here’s something else to consider: Five Guys franchise holder Mike Ruffer said on Monday that the cost of The Patient Protection and Affordable Care Act, President Obama’s landmark healthcare bill, will force him to raise the price of burgers and hot dogs, according to the Washington Examiner’s Paul Bedard.

“He will need all the profits from at least one of his eight outlets just to cover his estimated added $60,000-a year in new Obamacare costs,” Bedard’s report notes.

“Any added costs are going to have to be passed on,” said Ruffer, who operates eight Five Guys in the Raleigh-Durham, N.C. area.

But wait! There’s more: Ruffer also said that he had to scrap plans to build three additional restaurants because he’s still waiting for after the Obama administration to explain all the rules and penalties involved in the healthcare bill.

[…]The report goes on to explain that Ruffner thought he’d be exempt from “Obamacare” because he built each restaurant as its own company. However, the healthcare law doesn’t recognize this distinction – so now he’s exploring whether laying off employees or cutting back hours will keep his franchise safe from “Obamacare.”

“He said that ‘scorched earth plan,’ however, would hurt his restaurants, so Ruffer is likely to either pay the fine or buy insurance,” the Washington Exmainer reports. “But spreading the costs over his basic menu of fries, drinks, burgers and hot dogs, could scare off customers, he worries. He said that the recent spike in gas prices cut into his profits since fewer people were stopping at his restaurants.”

“And the health care law isn’t only going to hit Ruffer. He’s quizzed his workers to ask if they understand that they will be fined if they don’t get health insurance. Just one of 20 workers were aware of the $95 tax penalty that rises to $695 by 2016,” the report adds.

The recent spike in gas prices is also caused in part by Obama’s blocking of American energy development. It as if everything he does hurts the individual consumer.

Maybe next time, people will turn off their televisions and hit the books before voting. In the meantime, the fairest way to decide which employees to lay off is to take a walk through parking lot and pick every employee with an Obama sticker on their car.