If they had a crystal ball way back, maybe they should have called it the Unaffordable Care Act. Because it certainly seems to have completely mucked up insurance costs across the board.
From KELOland, one of the biggest health insurers in the state is abandoning the federal Obamacare marketplace because Obamacare claim levels are unsustainable:
Exactly two months ago, DAKOTACARE informed policy holders it will not be offering plans through the federal Marketplace in 2016. The company blamed unexpectedly high claim costs in 2015 for its decision not to take part in Obamacare in 2016.
However, DAKOTACARE will continue to offer plans outside of the Marketplace.
The company says if you had DAKOTACARE through the Marketplace in 2015 and want to receive federal assistance to pay for your health insurance premiums in 2016, you might want to take a look at the fine print of a letter it sent out to policy-holders on October 1.
The National Review also discusses the decay of the program on a national basis:
Premiums are rising. Not everywhere, but steeply in some states. Indiana is down 12 percent, but Minnesota is up 50 percent. Health-care expert Robert Laszewski points out that it is the insurers with the most enrollment and therefore the best information about actual enrollees who have tended to request the biggest increases — a sign that they don’t like what they’re seeing in their data.
Relatedly, the economics are shaky. According to a McKinsey & Co. analysis, last year health insurers lost $2.5 billion in the individual market that Obamacare remade. Obamacare co-ops that were supposed to enhance choice and lower costs have been failing, and almost all of them are losing money, a victim of the absurd rules (no industry executives on their boards, no raising capital in public markets, etc.) imposed on them by the law.
The problem with Obamacare in a nutshell is that on one hand, by imposing motley regulations and mandates, it increases the price of health insurance, and on the other hand, by providing subsidies, it tries to hide the cost — but not enough.
Is there anything salvageable of this mess at this point? This should leave us shuddering at how badly government interference has wrecked what was once a viable way for people to offset medical expenses by sharing the risk through insurance.
Now, the insurance coverage for medical expenses is starting to rival the cost of medical expenses themselves.
What are your thoughts?
Same event on a vastly larger scale, United Health, the nation’s largest, just announced it is likely pulling out, too.
http://www.startribune.com/unitedhealth-group-ceo-takes-blame-for-exchange-push/359512771/
That’s no surprise. There’s no room for $20 Million executive bonuses.
MHS: It is not likely. They are going to pull out.
Just like Dodd-Frank is putting community banks at a disadvantage to money center banks leading to consolidation (adding financial risk to the system and making big banks even too bigger to fail) like Great Western’s purchase of Home Federal, Obamacare is the direct cause of Dakotacare’s need to sell to Avera (reducing competition, adding to heath insurance costs, doing nothing for cost containment).
Every goal of Obamacare (cost containment, more people on insurance, portability, and pre-existing conditions) could have been done more effectively and cheaper.
Two fundamental colossal disasters.
This is such a layup issue for the GOP to lead on. With the rapid pullouts from ACA, every county government in the country will face huge budget issues almost immediately and we’re right back to where we were headed pre-ACA with indigent health care costs crushing local governments.
Toss out the big cities and Republicans control most local governments in the country, so we have to deal with it as a party. Something our old boss recognized 25 years ago, after all.
Another colossal fiasco for Obama and his “dream team” of “brilliant” liberals. The guy has not really done anything to deserve the office, yet a lot of people wanting to be in on something “historic” put him in office and were then to partisan to see he wasn’t up to the job so he got in again-with a little help from a corrupt IRS.
Great job, Obama!
Yep, it’s a mess.
And Romney holds no culpability for the second Obama term ? How did Romney lose to this guy ?
Not to worry, Jeb can fix it. [written in sarcasm font]
Your sarcasm font really says Hillary. Hope you enjoy her for the next eight years….
Can she run while under indictment? The more we see of her server and mishandling of top-secret documents, the more likely she is to be indicted. As well she should be.
That’s a whole lot of wishful thinking, at best. You’ve seen her server, personally?
Don’t need to. Just watch/read the news. The number of secret or classified documents is approaching 1000. She has committed at least several felonies due to this. She has also probably committed a felony of obstruction of justice. Isn’t it kind of ironic she was on the committee to prosecute a sitting President for the same thing she has also probably committed? Keep looking the other way.
It’s time for Trump! He’ll repeal it all and replace it with something wonderful. Believe him!
Could he be any worse than the clown that now occupies the White House? I think not; at least Trump has experience in a real job unlike BHO.
The solution to a bad idea is not “replacing” it –the solution is to rid ourselves of the bad idea.
Did the Dems offer a replacement for the “bad war” of Iraq?
What was the Dem’s alternative for GW Bush wanting to cut taxes? NOT CUTTING TAXES!!!
What’s the alternative for the ACA–NO ACA!
What’s this nonsense about demanding that Rep. offer alternatives to the Dem”s many bad ideas?
Parts of the ACA are certainly a boondoggle, but there are key provisions of the act that are extremely popular and useful:
• No annual or lifetime limits on healthcare.
• Can’t be denied coverage for any reason.
• Insurance companies can’t drop you when you are sick
• Can’t be denied coverage for pre-existing conditions.
• Children can stay on their parent’s plan until age 26.
• Preventative services with no-out-of pocket expense.
Dumping the ACA in full will set us back to square one – THAT is why it needs to be replaced, NOT repealed in-full.
crossgrain, this is far too intelligent a post for this hog wallow. But you are spot on.
It seems hough, that crossgrins objections are the reasons why the ACA is failing.
I don’t see that fixing Obamacare will leave those items in place.
Crossgrain, most of those provisions are the reasons Obamacare is failing.
Trump is on record of favoring a single payer system. I do not believe he has many good ideas on health insurance.
–If they had a crystal ball way back, maybe they should have called it the Unaffordable Care Act
The debacle that has become of the ACA did not require a crystal ball.
It was 90% predictable, and plenty of folks said so before it was passed without reading it.
You bought into a lot of lies, but that does not surprise me. You somehow must be ignorant enough to think that everything was hunky dory before the ACA was implemented. But everything wasn’t hunky dory.
The health care system in America is probably a worse economic enemy than any other factor. And it’s been reeling out of control since 1969, when medicine became a profit center rather than a profession.
So please go give yourself the gift of knowledge from a historical perspective. You won’t find it on FOX – you will have to go search for it. If you’re honest about learning, I will volunteer to be your teacher. Seriously.
This is yesterday’s news. How about today’s news about the EB5 lawsuit against the state of SD et al! Just when you thought it was dead and buried.
Extrapolating a South Dakota problem as a national problem is a leap of ignorance. Obamacare is working well, as promised, wherever it is not attacked by Republican legislators. It was always said that companies (United et al) that wouldn’t sell competitive policies would leave the marketplace. Good. There are plenty of low cost policies for sale by companies making 20% profit and liking it. Blaming the ACA for SoDak’s refusal to join is just another example of Republicans cemented down on the wrong side of history.
Crossgrain,
I agree with much on your list but not all.
1) Can’t be denied coverage for any reason. This is an incentive for irresponsible behavior. A person who has had access to health insurance but declined knowing they could wait until they get sick is a perverse incentive. At least prior to Obamacare, people who made this decision risked financial ruin and potentially sub-standard care. Obamacare just removed the risk to this irresponsible behavior.
2) Can’t be denied coverage for pre-existing conditions. I agree unless #1 applies.
3) Preventative services with no-out-of pocket expense. This has also a perverse impact on cost containment as not all preventative services have good cost/benefit relationships and these “inefficient” costs aren’t free but rolled into premiums. More importantly, there is a lot of analysis that available Dr. time is being excessively being absorbed for preventative services when that time would be better served being with the chronically ill. I’m not sure where I am on this issue but the analysis is complete so I’m reserving judgment.
Mr. Jones, over the years perusing this intellectual hog wallow, I have read some real moronic posts. I have read a few of yours that I thought were moronic, but none as good as this one here.
Go tell a person with MS or a kid with cancer that universal health care encouraged their disease. I’m not kidding you – that is one of the more moronic posts I have ever read. Not only in here, but anywhere. A total bunch of crap. In know complete idiots who wouldn’t say that.
If #2 depends on your #1 moronic response, it is equally moronic.
#3 – I guess you might have your perverse reasons for saying preventative measures aren’t cost effective. Your idea here is one thing that the rest of the world laughs at you about. I have friends who are physicians in countries that have better health care than ours. They get a bonus if they help their patients prevent disease. In the long run, preventative measures pay off. In Murica, physicians get a bonus if they treat the disease that has occurred. That’s why America has some really weak numbers when it comes to life spans and quality of life. Plain and simple.
I can’t even think how saying such stupid things rewarded you. I don’ think you’re stupid. I really don’t. But if you put up something this stupid again, I will be forced to re-evaluate my position.
Heisenberg/Heidleberg the only true moronic reading here is from your type stating that Government can fix any economic dilemma long term.
Oh look Heisy–another 100+ flowery words in two separate response telling us that he won’t respond anymore!
The Kaitlyn Jenner Story has fewer drama queens.
Porter great point made,They had plentY of time to put a bill in for preexisting conditions never saw one from Photo op.
Crossgrain … No parts of Obamacare are a boondoggle.
Jones … A person choosing not to insure (free riders) pay a yearly increasing fine and soon apply a cost/benefit analysis that favors being insured. Your analysis of no co-payment preventative services is invalid conjecture. It’s a model that’s been very effective by PPO’s for decades and lowers their costs significantly in the long run.
The most important plank in the Crossgrain is 4. My late wife got breast cancer and United refused to renew her policy at the end of that year. Financial devastation and medical bankruptcy ensued. Obamacare has virtually ended medical bankruptcy and millions will no longer be burdened by insurance companies that make billions by cancelling policies once you get really sick. Obamacare is working. Once Daugaard expands Medicaid you’ll see how much it helps everyone.
Boondoggle might not be the right word?
At any rate, the premium increases this year are nothing short of madness. [Warning: Anecdote detected in following sentence] I’m paying a ridiculous $975/mo with a $7500 deductible (but with drug and office co-pays) for individual coverage from Wellmark (Me, Wife, 19yo kid, 16yo kid). On the exchange, I can’t even get close to that! Anything comparable is 25% more. Until healthy folks start signing up in droves, the premiums offered on the exchange are completely out of whack. Those premium hikes spill over into individual plans as well since many of the insurers have lost their shirts with ACA-compliant plans.
I don’t proclaim to have the answers – but I do know that throwing out the baby with the bathwater by repealing the ACA would be far more disastrous than simply revamping parts to stem the bleeding.
crossgrain, you are simply the victim of a system with no competition. Hopefully, when fixes come there can be two major improvements.
1. National marketplace.
2. Cost containment on health providers.
OK – a third.
True Cost Medicare for ALL option. Of course, with an option for private insurance for those who want that option. That’s the best option and I hope some day it will come.
If you lived in CO, where we set up our own exchange you could insure four people for $700 a month with a $500 deductible and the rate didn’t go up at all this year. That there’re few affordable policies for sale in SoDak can’t be blamed on Obamacare but an insurance cartel headed by your Senator conspiring to keep the profit very high by limiting the products for sale.
Fair enough – so fix the ACA so I can buy a policy from CO while living in SD. It works with my kids’ 529’s. 🙂
Glad to hear Colorado is doing so well. Is this an example of doing well in Colorado? “The biggest co-op in Colorado’s Obamacare exchange is folding, leaving 83,000 without health insurance.” http://freebeacon.com/issues/thousands-to-lose-insurance-after-colorado-obamacare-co-op-shuts-down/ Maybe in the near future it will be doing even better and another 100,000 people will lose their health insurance.
I know it’s inappropriate to talk about another state, here. I’m barely able to post here at all but since you asked…CO is already moving beyond Obamacare since we’re now recognized as an innovation mecca able to institute new paradigms and tweet them until things work right. Next cycle single payer healthcare is on the statewide ballot. In short, state income tax goes up 8% and all healthcare costs are paid by a state agency. Just the way the rest of the world does it. (USA pays more for healthcare than any country and ranks only 38th in results.) CO citizens will save 4.6 billion overall in just the first year of implementation by removing the vast administration expense in insurance companies that are making 20% profit off the top. I don’t think it would fly in SD but it will make healthcare even cheaper down here. We don’t know where exactly USA is going but surely CO will get there first. 🤓
Meanwhile to your east, KS is involved in a governmental experiment in the complete opposite direction. It will be interesting to see how this plays out.
I do think universal/single-payer health coverage is inevitable. Hope it passes in CO – if for no other reason than for science!
Socialized medicine as predicted.
One of the biggest whoppers from the ACA to hit public employees this year was the elimination of the pre-tax carve out for insurance premiums. Now it is a taxed benefit. Basically, ACA wiped out years worth of pay raises for many teachers in the state if they ever bother to look through their pay stub. The liberals on the other blog should whine more about that when they complain about teacher pay. Oh, and my premium jumps nearly $400 in January…that is a bigger increase than the last five years combined. We will have to get a cheaper plan with a much higher deductible. ACA is a joke.
Suck it up, son. You are seeing the true costs of providing real health care.
Your dilemma is a result of an attitude produced by living in a welfare state (assuming you live in South Dakota here) where many, many costs are not realistic because of welfare from top to bottom.
Trump will fix it because he will blast down the state barriers and bring competition across the country.
Vote Trump!
Let us not forget that DakotaCare is being purchased by Avera. Avera is also in the current exchange. Would it make since for Avera to compete against itself in the exchange? Avera claims it will keep the two companies separate, but that is merely in the pure private market where they can tailor the two companies to potentially different consumers, but in the more regulated exchange wouldn’t it make business sense to compete against true competitors than themselves regardless of whatever smoke and mirrors reason DakotaCare may give for leaving the exchange…..Boeing competes against Lockheed Martin and not against another Boeing subsidiary, don’t they when dealing with the Feds?
As far as the National Review article, couldn’t the same article have been written with a greater emphasis on Indiana and merely a flippant mentioning of Minnesota? I am waiting for the NR to ask the Heritage Foundation for why they created this Romneycare, I mean Obamacare, back in 1994 in response to Hillarycare if they are such of a conservative viewpoint like that of the conservative Heritage Foundation.
Heisenberg,
Your response of many words to call me a moron has made it clear that our different levels of intellect and capacity to debate makes it clear discussion with you is impossible. You are just too intellectual and rational for me and my hog wallow.
Once again, we see this nasty streak appear whereby, when challenged, les pape des plaines adopts a well worn cloak of faux victimhood, claims that he won’t engage anymore because its impossible to do so, and then goes on to tell us why he won’t engage anymore.
At least with Heisy, he’s not doing his Sherlock Holmes routine….yet.
grow up.
–Mr. Jones, over the years perusing this intellectual hog wallow, I have read some real moronic posts. I have read a few of yours that I thought were moronic, but none as good as this one here.
Where did Heisy call you a “moron”? Fact is, he did not. In fact, he said just the opposite.
Intelligent people can and do make moronic statements. That does not mean their morons.
If you do not agree that your statements are moronic, then tell us why. That’s what adults do.
Its not personal, get over it. Its not about you–its about the issues and sharing views of those issues.
Since I am not smart enough to grasp the specifics Heisenberg found moronic, I don’t know how to respond. If that to you isn’t adult-like, I don’t know how to respond to you either. It this invites further commentary from you, Heisneberg or others, I will accept them on their merits without further commentary. My best wishes.
ObamaCare was a bad idea in 2009. Higher rates, higher deductibles, and higher taxes are still a bad idea in 2015.
Porter thks for the update .None of these guys here can hold a candle to you.
No, we cannot hold a candle to Porter. That might be because candles get blown our when held up to a hot wind.
…and this is another reminder of why we need to elect a Republican President in 2016!