Obamacare On “Verge Of Collapse” As Premiums Set To Soar Again In 2017

WHO'S SREWED IF OBAMACARE GETS THE AX?
Source: ZeroHedge.com
August 11, 2016

If Obamacare enrollments continue their current trend and insurers continue to hike premiums at alarming rates then Republicans may not have to worry about “repealing and replacing Obamacare” as it might just work itself out “naturally”.  The 4th open enrollment period for Obamacare begins on November 1, 2016 and industry experts are warning that another year of tepid demand from “young and healthy” Americans could force more insurers out of the exchanges effectively marking the end of Obamacare as we know it.  According to a story published by The Hill, 11 million people bought health insurance through the exchanges for 2016 which was drastically below the Congressional Budget Office’s initial projection of 21 million.

Well we’re shocked!  Turns out that whole “adverse selection bias” was a real thing.  So you’re telling us that young, healthy people don’t want to pay for insurance they know they’ll never use?  We guess America’s youth can actually do basic math, after all.  Apparently they were able to figure out they would rather take the lower tax associated with Obamacare penalties than the larger tax associated with buying a healthcare policy they’ll never use.  We guess Millennials are a little less enthusiastic about embracing socialism when the costs are coming out of their pockets.

With America’s youth continuing to shun health insurance, insurers are all racking up massive losses on the exchanges.  For many insurers the losses will simply result in massive premium hikes but others have decided to withdraw from the exchanges all together.  In fact, UnitedHealthCare recently announced plans to exit most state exchanges by 2017 (see our post entitled “Largest US Health Insurer Exits California, Illinois Obamacare Markets“)  Per The Hill:

In the last month, two major insurers – Aetna and Anthem – both reversed course on their plans to expand in the marketplace. Now, all five of the nation’s largest insurers say they are losing money on the exchanges.

 

“From a policy point of view, we’re basically seeing the exchanges unravel,” said Michael Abrams, a healthcare strategist with Numerof & Associates who consults for insurers including UnitedHealthGroup.

2016 average premiums were up substantially in most states (see map below) and, with no one making money, 2017 seems no better.  According to The Hill:

Already, many insurers this year are proposing substantial rate hikes with the hopes of making up for higher recent medical costs. The average premium increase next year is about 9 percent, according to an analysis of 19 cities by Kaiser Family Foundation. But some hikes are far higher: Blue Cross Blue Shield has proposed increases of 40 percent in Alabama and 60 percent in Texas.

Obamacare Premium Map

For her part, Hillary Clinton has vowed to stick with Obamacare insisting that taxpayers just need to spend more money on advertising to drive higher enrollments:

Clinton has already laid out plans to help boost enrollment by making coverage more affordable for people who are still priced out of ObamaCare.

 

Like Obama, she vowed to invest in advertising and in-person outreach to help more people enroll. Clinton would also increase ObamaCare subsidies so that customers spend no more than 8.5 percent of their income on premiums – down from 9.5 percent under current law.

 

She has also proposed a tax credit of up to $5,000 per family specifically to offset rising out-of-pocket costs – a side effect of cheaper plans offered under ObamaCare.

Right, more advertising should fix it because no one in the country is familiar with Obamacare.  As Obama likes to say when things don’t go as planned, it’s not that Obamacare is bad it’s just that we’ve failed to explain it properly.  No, we think people get it and they just don’t like it.   

We also find it hard to understand how a Clinton administration could make healthcare cheaper than “free?”  Perhaps we should start paying people to take taxpayer subsidized healthcare?  If at first you don’t succeed, throw more taxpayer money at it…

An Update on the Obamacare Disaster

Screen Shot 2016-08-05 at 1.08.46 PM

LibertyBlitzKrieg.com
Michael Krieger
August 8, 2016

An architect of the federal healthcare law said last year that a “lack of transparency” and the “stupidity of the American voter” helped Congress approve ObamaCare.

He suggested that many lawmakers and voters didn’t know what was in the law or how its financing worked, and that this helped it win approval. 

– From the post: Video of the Day – Obamacare Architect Credits “Lack of Transparency” and “Stupidity of the American People” for Passage of Healthcare Law

2017 is shaping up to be a very, very ugly year for Obamacare. A year in which it may become obvious to all that the entire thing is an unredeemable failure.

Many of you surely have been paying attention to headlines regarding insurers fleeing the Affordable Care Act (ACA) exchanges due to major financial losses (despite huge premium hikes), but you may still not recognize how bad the situation really is.

In that regard, read the following excerpts from a Vox article published yesterday titled, Obamacare’s Markets Will Be Less Competitive Next Year:

Competition on the Obamacare marketplaces will decline next year. There will be significantly more places in the country where customers have no choice of health insurance because just one company signed up to sell coverage.

This is the conclusion that health policy experts have increasingly gravitated toward in recent months and weeks, as major insurance companies have announced hundreds of millions of dollars in financial losses on the Obamacare marketplaces.

President Obama promised when the marketplaces launched that Americans will find “[m]ore choices, more competition, and in many cases, lower prices.” And insurance competition did go up in the first few years of Obamacare. Between 2014 and 2015, the US Department of Health and Human Services estimated that the number of insurance carriers participating in Obamacare increased 25 percent. More health plans wanted in on a new opportunity to sell directly to consumers.

But now some of these gains are backsliding. A recent analysis shows that Obamacare’s marketplaces will have twice as many exits as entrants in 2017. Insurers have tested out Obamacare, and in some cases they’ve lost hundreds of millions of dollars.

Continue Reading At: LibertyBlitzKrieg.com

Affordable Care Act Not So Affordable: Texas’ Largest Insurance Provider To Hike Rates 60% In 2017

Health care costs
Source: NaturalNews.com
Daniel Barker
June 14, 2016

Contrary to all the promises, the increasingly exorbitant cost of health insurance under Obamacare is beginning to be revealed as Blue Cross Blue Shield prepares to implement a 60 percent rate hike for individual policies in its Texas market.

The increases will affect more than half a million Texans who are now enrolled in Blue Cross Blue Shield – if approved, the new rates will go into effect in 2017.

From The Dallas Morning News:

“Blue Cross Blue Shield of Texas has about 603,000 individual policyholders and, unlike other insurers in the state, offers coverage in every county. In a recent filing with federal regulators, the company said it is seeking increases averaging from 57.3 percent to 59.4 percent across its individual market plans.

“In a statement, Blue Cross Blue Shield of Texas said its request is based on strong financial principles, science and data. ‘It’s also important to understand the magnitude of the losses … experienced in the individual retail market over the past two years,’ the statement said. The company says it lost $592 million last year and $416 million in 2014.”

Among the worst affected in Texas will be those who live in rural areas where Blue Cross Blue Shield is the only coverage available.

Texas is not alone

Texas, the third-biggest market under the Affordable Care Act after Florida and California, is not the only state that will see significant rate hike increases in 2017, suggesting that the ACA is not so affordable, after all:

“With data available for about half the states, premium increases appear to be sharper, but there are also huge differences between states and among insurers. Health insurance is priced locally.

“A recent analysis of nine states by the consulting firm Avalere Health found that average premium increases for the most popular kind of plan ranged from 5 percent in Washington state to 44 percent in Vermont.”

The rate increases throughout the country are in response to huge financial losses for insurers that have been caused by low enrollment, higher-than-expected cost of medical care for many patients and “problems with the government’s financial backstop for insurance markets.”

Some policyholders are eligible for government subsidies that typically cover more than 70 percent of premiums, but many people are ineligible of such protection, including “small business owners, self-employed people and early retirees.”

For many, dropping coverage will be the only option

There is a real concern that many people will simply be forced to drop their coverage, even at the risk of paying fines.

From TheDailySheeple.com:

“In a country where the cost of living is going up on virtually all fronts but wages and jobs are not increasing, exactly who is going to be able to afford this insane rate hike? And that’s just to pay for the insurance in case you get sick…”

“Affordable health care for all” was a lie – Obamacare has accomplished precisely the opposite and the evidence of this continues to mount as Texas and other states witness skyrocketing premium costs.

Mike Adams, founder/editor of Natural News and author of the new book “Food Forensics” said:

“As this is happening, your employer will either go out of business trying to cover your skyrocketing health care costs, or — more likely — slash your hours to make you a part-time employee with no health insurance coverage. You’ll then need a second job to make up the lost income from the first job, and you still won’t have health coverage because you’re part time at the second job, too. So you’ll need a third job just to raise enough money to pay for a crappy health care plan with a $20,000 deductible. But you don’t have $20,000, so if something serious happens to you, you’re basically bankrupt, jobless and ultimately homeless.”

Thanks, Obama…

Read More At: NaturalNews.com