From the Wall Street Journal.
Excerpt:
Early signals suggest the majority of the 2.2 million people who sought to enroll in private insurance through new marketplaces through Dec. 28 were previously covered elsewhere, raising questions about how swiftly this part of the health overhaul will be able to make a significant dent in the number of uninsured.
Insurers, brokers and consultants estimate at least two-thirds of those consumers previously bought their own coverage or were enrolled in employer-backed plans.
The data, based on surveys of enrollees, are preliminary. But insurers say the tally of newly insured consumers is falling short of their expectations, a worrying trend for an industry looking to the law to expand the ranks of its customers.
About 48 million Americans were uninsured in 2012. The health law is expected to cut 25 million from that total by expanding state-run Medicaid programs and the pool of privately insured people who buy through state marketplaces, also called exchanges.
Only 11% of consumers who bought new coverage under the law were previously uninsured, according to a McKinsey & Co. survey of consumers thought to be eligible for the health-law marketplaces. The result is based on a sampling of 4,563 consumers performed between November and January, of whom 389 had enrolled in new insurance.
One reason for people declining to purchase plans was affordability. That was cited by 52% of those who had shopped for a new plan but not purchased one in McKinsey’s most recent sampling, performed in January. Another common problem was technical challenges in buying the plans, which 30% mentioned.
I thought that the point of Obamacare was to reduce the number of uninsured Americans. Well, I guess if you know 129 million people out of their current insurance, and some of those people who are now uninsured will be obligated by law to buy Obamacare health care plans, then that counts as reducing the uninsured, right? I mean – they were uninsured when you knocked them out of their current health plan, right? It makes sense. Like me robbing you of $500 and then giving you $50 back. Good deal, right?
Previously, the Wall Street Journal reported on how the number of young people enrolling was WAY below estimates, which will increase the losses of the private insurance companies.
Excerpt:
Just under a quarter of the roughly 2.2 million people who signed up for private plans nationwide by Dec. 28 were between the ages of 18 and 34, while one-third were in the 55-to-64 range, just short of the age at which most qualify for Medicare, the federal government program for the elderly.
[…]Under the 2010 Affordable Care Act, consumers no longer pay premiums based on their health risks. To prevent a sharp rise in premiums in 2015 and beyond, carriers say they need strong enrollment from younger people who are likely to be healthier. That would balance out the bills racked up by sicker and older people.
[…]“There’s no way to spin it: Youth enrollment has been a bust so far,” said Brendan Buck, a spokesman for House Speaker John Boehner (R., Ohio). “When they see that Obamacare offers high costs for limited access to doctors—if the enrollment goes through at all—it’s no surprise that young people aren’t rushing to sign up.”
Previously, I blogged about a study that showed that young people have to pay are much higher than pre-Obamacare health plans. That’s why fewer of them are enrolling than the Democrats expected. If the insurance companies take losses on this shortfall, then they will need to be bailed out by the government – and the Obamacare bill provides for this bailout. As it stands right now, Moody’s has downgraded health insurance companies from stable to negative.
WINTERY KNIGHT 