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bruce MN
Advisor

Not sure if this is good news or bad

Seems that the health insurance industry is fairly upbeat over ACA.  Good, then, that it seems to be working OK. I hope that means that they see growth potential in it and not just increased margins.  That's supposed to be regulated, but nobody ever seems to enforce much of anything, other than prison crowding petty drug crimes.

 

http://www.washingtonpost.com/blogs/wonkblog/wp/2014/01/15/dont-believe-the-hype-health-insurers-thi...

 

 

2 Replies
r3020
Senior Advisor

Re: Not sure if this is good news or bad

 

 

snip-

On Jan. 9, insurer Humana Inc. disclosed in a regulatory filing that the risk pool of applicants for insurance on the exchanges would be worse than previously expected. Humana cited the "administrative fix" announced by the Obama administration and aimed at allowing individuals to remain enrolled in their current plans, which had been cancelled as a result of requirements imposed by the law. Insurers had been depending on those with cancelled plans (who tend to be healthier) to end up obtaining insurance through exchanges.

Under the risk corridor program, if an insurer’s losses are 103 percent to 108 percent over the target amount, the federal government would absorb half of those losses — and for losses that exceed 108 percent, the government would cover 80 percent.

So, major losses by insurers could translate into a large expenditure of taxpayer money. And as HHS wrote in its regulatory filing, “The risk corridors program is not statutorily required to be budget-neutral.”

 

“We are becoming increasingly concerned about momentum that is quickly building among some leading conservatives for elimination of the risk corridor and reinsurance programs,” Serota wrote.

He urged members to let members of Congress know that, “eliminating these programs will result in massive premium increases and could cause private insurers to become insolvent” and that “it jeopardizes the entire private health insurance market and will ultimately lead to a single-payer system.”

Griffin said that he hadn’t heard from any insurance lobbyists, but said the industry’s position is understandable.

“I don’t find it surprising that companies who stand to gain lots of money, whatever that amount is — millions or billions — it doesn’t surprise me that they would indicate a desire to take that money,” he said. “These are the same companies that have stood behind the law and said it was going to be a great thing.”

 

http://washingtonexaminer.com/cost-of-obamacares-insurer-bailout-program-wont-be-known-until-summer-...

Red Steele
Veteran Advisor

Re: Not sure if this is good news or bad

Thanks for posting that link, 3020. I did post an article two weeks ago that detailed how insurance companies were insulated from large losses by the provisions buried deep in Barrycares, but Bruce may have skimmmed over that or maybe he doesn't remember things all that clearly.

 

 

Rather than defund Bareasscare, the republicans should have just repealed the insurance bailout and let the ins co's skirm..