Tag: ACA will drastically increase prices and drop quality of care

That was the plan from the start

For those that don’t get it, the people that foisted the Obamacare monstrosity on us see this as a feature, not a problem:

When Aetna Inc. announced that it would withdraw from three-quarters of the states where it offers Affordable Care Act exchange plans, the move wasn’t entirely unexpected: The company had signaled its woes early this month.

But the decision by one of the nation’s largest health insurers AET, -0.20% to withdraw from 11 of 15 state exchanges follows similar moves by UnitedHealth Group Inc. UNH, -0.38%, the largest U.S. health insurer, and Humana Inc. HUM, +0.00% , another large health insurer.

The string of bad news marks a tidal shift for the ACA. Where insurers, including Aetna, had once planned on exchange expansions next year, many are instead curtailing their coverage.

Aetna’s pared-down 2017 exchange participation “raises further questions about the long-term viability of the ACA marketplaces,” said Susquehanna analyst Chris Rigg.

Aetna explained the decision as a way to “limit our financial exposure moving forward,” after pretax losses of $200 million in the second quarter and losses totaling $430 million on individual products since January 2014. The company did not specify what portion of the losses was attributable to individual public plan offerings.

The company criticized the ACA’s “inadequate” risk-adjustment mechanism, which is meant to limit insurers’ losses as they start covering sicker individuals. It’s a common criticism from health insurers, which have long said that the risk-pool program isn’t working the way it’s supposed to, though others say big insurance companies should instead change their model to keep costs down.

You know what? Even though I have investments in Aetna funds, I can’t say I feel sorry for them. They were stupid enough to buy the lies the crooked democrats told them, and this is on them. There is no way to make a system that allows people to not join and pay until they have a serious condition – and the penalty never comes to the level of pain one faces buying this shit because of the over regulation of this product – work financially. Why the fuck would someone young not opt for the penalty and only sign up whenever the shit hits the fan later in life, huh? And Aetna should have remembered this, but they bought the nonsense and figured they would somehow make it work. Idiot the lot of them.

Anyway, the fact of the matter is that all this hand wringing, now that Obamacare is doing exactly what those of us had pointed out it was designed to do when we saw it being put together, is bullshit. Obamacare was designed from the start to destroy the American healthcare system. All that talk about cost reduction or containment, helping people out, and especially making things better while allowing those of us that were happy to keep what we had, was just that: talk. The plan the left has been running with is single payer healthcare controlled by an all powerful government from the start, and this monstrosity was put together to facilitate that while fucking over the people that would otherwise never accept the single payer idea until the system had fallen apart.

Obamacare providers got screwed, and are too big to fail..

So at the time when the collectivists held all 3 branches of our government , and were telling us they had to pass Obamacare for us to see what it was about, many of us, when asked, pointed out that the vilified insurance industry went along with this nonsense because they bought the campaign of lies that these crooks were selling. Somehow those that had to know better accepted the contention that Obamacare would actually result in cost reductions, and thus by extension, bigger profits for them. Who cares if it was blatantly obvious that what this democrat shit sandwich would really do was incentivize primarily the people most likely to drive costs through the roof, while those that didn’t need it, despite the penalties, would stay away? well the morons in the health insurance industry should have cared, but they, like so many others, were basically fooled by a false narrative.

As anyone that understood human nature could point out, in a country where medical professionals can’t turn away anyone that needs urgent care, why would someone very unlikely to need anything but urgent care, buy damned health insurance? And why would they expect that someone that was previously unable to get insurance due to something that was going to cost a fortune not sign up for free shit? Fast forward 6 years. Obamacare now has clearly shown us that nothing that was promised would actually come to pass, and that we all would pay more for crappier service. The health insurance industry has been forced to jack rates continuously to cover their massive shortfalls, and now, we have these companies looking for a tax payer subsidy to cover the ass rape they have experienced thanks to a bad law:

Insurers helped cheerlead the creation of Obamacare, with plenty of encouragement – and pressure – from Democrats and the Obama administration. As long as the Affordable Care Act included an individual mandate that forced Americans to buy its product, insurers offered political cover for the government takeover of the individual-plan marketplaces. With the prospect of tens of millions of new customers forced into the market for comprehensive health-insurance plans, whether they needed that coverage or not, underwriters saw potential for a massive windfall of profits.

Six years later, those dreams have failed to materialize. Now some insurers want taxpayers to provide them the profits to which they feel entitled — not through superior products and services, but through lawsuits.

Earlier this month, Blue Cross Blue Shield of North Carolina joined a growing list of insurers suing the Department of Health and Human Services for more subsidies from the risk-corridor program. Congress set up the program to indemnify insurers who took losses in the first three years of Obamacare with funds generated from taxes on “excess profits” from some insurers. The point of the program was to allow insurers to use the first few years to grasp the utilization cycle and to scale premiums accordingly.

As with most of the ACA’s plans, this soon went awry. Utilization rates went off the charts, in large part because younger and healthier consumers balked at buying comprehensive coverage with deductibles so high as to guarantee that they would see no benefit from them. The predicted large windfall from “excess profit” taxes never materialized, but the losses requiring indemnification went far beyond expectations.

In response, HHS started shifting funds appropriated by Congress to the risk-corridor program, which would have resulted in an almost-unlimited bailout of the insurers. Senator Marco Rubio led a fight in Congress to bar use of any appropriated funds for risk-corridor subsidies, which the White House was forced to accept as part of a budget deal. As a result, HHS can only divvy up the revenues from taxes received through the ACA, and that leaves insurers holding the bag.

They now are suing HHS to recoup the promised subsidies, but HHS has its hands tied, and courts are highly unlikely to have authority to force Congress to appropriate more funds. In fact, the Centers for Medicare and Medicaid Services formally responded by telling insurers that they have no requirement to offer payment until the fall of 2017, at the end of the risk-corridor program.

I say fuck them both. HHS is a criminal entity as far as I am concerned, far worse than anything else out there in the real world. But these insurance companies should feel the pain. After all, they were stupid enough to buy into another massive campaign of lies from the marxists and their promises to insulate these companies if the not only went along but cheerlead for the marxists, from the consequences of bad economic policy that then also ignored human nature (what else that caused us all some huge pain recently does this sound exactly like, huh?). Wishful thinking is not enough, as this clearly points out:

That response highlights the existential issue for both insurers and Obamacare. The volatility and risk was supposed to have receded by now. After three full years of utilization and risk-pool management, ACA advocates insisted that the markets would stabilize, and premiums would come under control. Instead, premiums look set for another round of big hikes for the fourth year of the program.

Get used to this people. There are no free lunches. Someone pays, and while the collectivists, but especially one of the politicians, would like you to be dumb enough to believe their promise it will be someone else, the fact is that you will always pay in one form or another, unless you are one of them, that is. Greedy assholes in the insurance industries bought the bullshit the left sold when they should have known better, and now they are up the creek without a paddle and looking for someone else to pay. Hence the following news:

Consumers seeking to comply with the individual mandate will see premiums increase on some plans from large insurers by as much as 30 percent in Oregon, 32 percent in New Mexico, 38 percent in Pennsylvania, and 65 percent in Georgia.

Yup, we will all pay. Perverse incentives will produce perverse results, but hey, collectivists will tell you the right people pushing the right way will finally make that happen.