The announcement that health insurance giant Humana will pull out of all Affordable Care Act marketplaces in 2018 should surprise no one.
“Obamacare is like the Oroville Dam — destined to collapse,” said Dr. Ramin Oskoui, a cardiologist in the Washington, D.C., area. He is also CEO of Foxhall Cardiology PC and a regular contributor to LifeZette. “It’s just a matter of when.”
[lz_ndn video=31992262]
Insurers like Humana have been very open about the fact that they’re hemorrhaging money under the failed policies of Obamacare. Humana is among many that have either collapsed or drastically scaled back the number of markets they’re serving over the past two years, as a result of the unsustainable mandates of the ACA and an increasingly unbalanced risk pool.
Humana stated in a press release Tuesday it doesn’t appear the Obamacare marketplace will get any healthier in 2017. The company expects to lose $45 million on its individual commercial business this year.
“The health care industry is in a dynamic state, and the public is looking to companies like Humana to improve the cost of care and the consumer experience,” said Bruce D. Broussard, Humana’s president and chief executive officer, in a statement.
“The only solution is to fully repeal the law and pass targeted solutions that will lower costs, increase choice, and improve access to care,” said one advocacy group.
“As an independent company, we will continue to innovate and sharpen our focus on the local health care experience of all our members, especially seniors living with chronic conditions. Our strategy not only improves the value we bring to members, doctors and other health care professionals, but it also helps reduce costs and enhances the growth platform for both our health plans and our Health care Services businesses, thus positioning us well for long-term, sustainable growth.”
The CEO of fellow insurance giant Aetna Inc., Mark Bertolini, echoed Broussard’s comments on Wednesday, telling The Wall Street Journal that Obamacare markets are nearing failure as premiums climb and healthier individuals drop out.
“It is in a death spiral,” said Bertolini, as Bloomberg reported.
[lz_third_party align=center width=630 includes=https://portal.aolonnetwork.com/o2/search/v/5890cf937ca57666f49837cf#Basic%20Information]
Senior policy adviser for Freedom Partners, Nathan Nascimento, said the announcement is the latest reminder that Obamacare’s skyrocketing premiums and out-of-pocket costs have turned off millions of younger, healthier customers who were needed to stabilize the risk across the marketplaces created by the law.
“Attempts to blame instability on the effort to repeal Obamacare just aren’t consistent with the facts. The reality is, Obamacare itself is causing insurers to flee the exchanges, leaving millions of customers with little to no options,” said Nascimento. “The only solution here is for Congress to fully repeal the law — including its costly regulations that are driving insurers out of the market —and pass targeted solutions that will lower costs, increase choice, and improve access to care for millions of people seeking relief.”
Related: Don’t Fall for the Fear-Mongering About Trump Care
Other major insurers have threatened to withdraw from the ACA in 2018 if there isn’t a clear plan drawn up by Republicans in terms of what will happen between now and a replacement plan. Until then, Oskoui said patients should brace for more of the same: higher prices, more out-of-pocket expenses, and fewer options for our health care.
Strategies among Republicans and the new Health and Human Services Secretary, Dr. Tom Price, are being discussed, but President Donald Trump indicated this past week that it may be the new year before we see anything come to fruition.
Join the Discussion
Comments are currently closed.