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.
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 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…
Most likely this was the plan all along so the people will clamor for single payer, which Uncle will be only too happy to provide.
That was exactly the plan. Stage 1: get something…anything in place. Stage 2: When stage 1 fails, double down with single payer.
We may not get there immediatley…..
Yeah, there you go. Except the part Barry left out was: “Not for me and my cronies, though. We will have the finest care money can buy, expense be damned; all paid for by you fucking suckers!”
And even if he did say that, the response would still be clapclapclapclapclapclapclapclapclap!!!
Obamacare as a deliberate transitional phase leading to single payer is like socialism as a transitional phase leading to communism (they actually advocate this: http://www.workers.org/2012/us/socialism_0301/).
As was pointed out when it was instituted Obamacare was designed to fail, and that has come about no matter how much the leftists protested that claim of designed failure at the time.
People should study Marx and Engels more so they will recognize what is happening and why it is being done that way, otherwise it is almost impossible effectively to oppose it.
Single payer was NEVER the plan. Remember Obamacare was designed to bend over backward to keep the private insurance companies and Big Pharma on the gravy train. Single payer shuts them out (along with their huge campaign donations).
Watch the video posted by Brian. Watch it again. Watch it until you understand what Obama is saying.
Let me help with some excerpts: “…I happen to be a proponent of single-payer, universal health care…”
“…as all of you know, we may not get there immediately…”
Starting to make sense, now?
Just met with the healthcare guy last week. The last 2 carriers of Obamacare are asking for a 20% increase for 2017 in PA. Of course, the ruler of the “free” market, the almighty feds, have to approve the increase.
I would think they would figure out how to keep premium growth low in an election year, at least in the swing states.
They only have to worry about keeping the sheeple unaware until after the election, which they have done the last few years.
Expect the Nov 1 date to be changed to Dec. 1
I’m less concerned with the costs for people on the exchanges than the other 90% of us. Making it illegal to not buy insurance – as well as making insurance companies subject to the risk of having to take on AIDS & cancer patients – caused premiums to rocket upward.
More advertising huh? Maybe the tobacco industry can spare a few good people.
At least they are telling us in advance that their best plan to save Obama’s wet fart of governance is to try and frighten the uninsured.
Bring back catastrophic coverage as an option and I would sign up tomorrow. That is true insurance. I don’t want some health maintenance scam.
Exactly. Just like your car. You pay out of pocket for maintenance and repairs; accidents and catastrophes are covered by insurance.
Damn , I’m continually amazed at how perceptive you knuckleheads can be.Good thinking. Pat yourselves on the head.
Anonymous my ass. I know bb when I see him.
My wife and I retired early and travel throughout the country. The only people we’ve ever met who like Obamacare are people who are Democrats and are either on Medicare or have health plans through their employers. We are now asked to pay $820/month for coverage through our state’s exchange (Idaho) for a policy comparable to what used to cost us $240/month back in 2011. Way to bend that cost curve!
Medical establishment has been raping the public for years with their crony capitalist system. They deserve all the bad shit that is happening to them. We will get single payer because we are stupid as a group and we will not like it unless we are part of the elite who will be the animals who are more equal.
We deserve what we get because we wanted someone else to pay for our medicine.
I don’t mind paying for health insurance coverage but I do mind being forced to pay for someone else . For years I have paid a high premium and never understood why a state or federal employee paid less and got more coverage . Oh your not a member of our group OK the fuck you and your group gimmie back my tax money that helps pay your salaries since I was not welcome to purchase health insurance under their group you don’t want to be in fair now do you !
I know silly rant sadly health care is fucked like everything else in our country . Fact is most of Americans that pay out of their own pocket for health insurance pay for a “CADALLIC PLAN” we just don’t get it and so greed and lies paved the way for single payer care for all Americans . Employers did not want to pay for it , taxpayers don’t want to pay for it but for profit care groups want to charge out the ying yang for everything so in comes government to finish the total fuck job