Big Health-Rate Increases & Millions In The Red Due To Obamacare

SAMUEL ADAMS

by Sam Adams MMIV: Since Democrats jammed their unpopular health care law through Congress, it’s been worth periodically reminding the public that their sales pitch for Obamacare was that it would lower health care costs and premiums. President Obama claimed in 2010 that “my proposal would bring down the cost of health care for millions - families, businesses, and the federal government.” And that he predicted his plan would “cut the cost of a typical family's premium by up to $2,500 a year.”

Once again, events continue to show that the promises of Obamacare’s architects and proponents are being broken.

The Wall Street Journal wrote last week, “At a July town hall in Nashville, Tenn., President Barack Obama played down fears of a spike in health insurance premiums in his signature health law’s third year.

“‘My expectation is that they’ll come in significantly lower than what’s being requested,’ he said, saying Tennesseans had to work to ensure the state’s insurance commissioner “does their job in not just passively reviewing the rates, but really asking, “OK, what is it that you are looking for here? Why would you need very high premiums?”’

“That commissioner, Julie Mix McPeak, answered on Friday by greenlighting the full 36.3% increase sought by the biggest health plan in the state, BlueCross BlueShield of Tennessee. She said the insurer demonstrated the hefty increase for 2016 was needed to cover higher-than-expected claims from sick people who signed up for individual policies in the first two years of the Affordable Care Act.

“Several regulators around the country agree with her, and have approved all or most of the big premium increases sought by the largest health plans in their states for the new sign-up season that begins Nov. 1.”

The Journal continues, “Kentucky Insurance Commissioner Sharon Clark approved the 25.1% increase requested by the Kentucky Health Cooperative, the largest insurer on the state’s insurance exchange. Kentucky has taken a more supportive stance toward the health law, including operating its own insurance exchange rather than using the federal government’s HealthCare.gov. ‘We’re lucky’ by comparison to Tennessee, Ms. Clark said.

“Oregon’s Laura Cali allowed an average 25.6% increase for Moda Health Plan Inc., the biggest plan on that state’s exchange. In Ohio, Lt. Gov. Mary Taylor approved a 14.5% increase from Medical Mutual. In Michigan, BlueCross BlueShield won approval for the average 11.4% increase from insurance director Patrick McPharlin.

“In Idaho, insurance director Dean Cameron said that an average 23% increase by Blue Cross of Idaho Health Service Inc., was disappointing but ‘not unreasonable’ and that he didn’t have the power to stop it.”

Just as critics of Obamacare predicted, the WSJ points out, “[I]nsurers have found that business has been more costly than expected. Some have said they’ve incurred steep losses. The American Academy of Actuaries also said in a recent paper that some programs designed to cushion insurers against high-risk enrollees are ending.”

Meanwhile, yet another state Obamacare entity is failing. According to the Las Vegas Review-Journal, “Nevada's health insurance exchange is losing its only locally based carrier. Nevada Health CO-OP, a nonprofit insurer created by the Affordable Care Act and federally funded to offer health coverage through the Nevada Health Link marketplace, said Wednesday that it cannot make enough money to stay in business after Jan. 1.

“Co-op CEO Pam Egan said a second year of high claims costs and limited growth projections for enrollment made it ‘clear’ the insurer would have a hard time providing ‘quality care at reasonable rates’ in 2016. . . .

“Observers say the co-op, as idealistic as its origins were, could not survive market realities amid early troubles with doctor networks, reimbursements, off-exchange coverage and administrative costs. The co-op's failure is something of a blow to the state's competitive landscape, and it's unclear if it can repay $65.9 million in federal loans it received for its 2012 launch.”

The Review Journal notes, “Nevada Health CO-OP is the fourth co-op nationally to fail.

“Louisiana's Health Cooperative closed in July after suffering a net operating loss of more than $20 million.

“Iowa's CoOpportunity Health closed in January, after a sicker-than-average customer base took a financial toll despite $145 million in federal loans.

“A co-op in Vermont was shuttered in 2013, before it even began selling plans.

“Nevada Health CO-OP may not be the last of it. The inspector general found that 22 of 23 co-ops lost money in 2014, with Maine the exception. The federal government lent $2.4 billion to start co-ops nationwide.”
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Sam Adams MMIV is the pen name for an un-named beltway source. While receiving information from many sources, this Sam's words sometimes need to be credited. Thanks to all the Adams patriots who speak up for America.

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