Tags: Politico | Obamacare | Crumbling

Politico: Obamacare Crumbling as Insurers Lose Millions

Image: Politico: Obamacare Crumbling as Insurers Lose Millions
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By    |   Wednesday, 13 Jul 2016 10:23 AM

Obamacare in North Carolina has been both a success and a failure, says Politico, pointing to the Tar Heel State as an example of the Affordable Care Act's deep-seated flaws.

In 2016, over 600,000 people signed up for Obamacare in the state, 90 percent of whom received financial support for their insurance bills under the law. Politico reports the Affordable Care Act has cut the number of uninsured in North Carolina by 30 percent in three years.

While the law helped thousands of Americans, insurers have lost tens of millions of dollars. The largest insurance company in the country, UnitedHealthGroup, is withdrawing from the Obamacare market in North Carolina next year.

In 2014 and 2015, Blue Cross Blue Shield of North Carolina lost $400 million on Obamacare policies and said it may withdraw from the state health-insurance exchange by next year. Aetna, another major provider, plans to raise rates by almost 25 percent in the next year.

Politico reviewed the financial filings of almost 100 health plans from a dozen states, and found that not even a quarter managed to keep payouts at or below about 85 percent of premiums taken in, the typical break-even point, and 40 percent paid out more on medical costs than they collected in premiums.

In other words, insurers lost tens of millions of dollars because of Obamacare.

The Chicago Tribune reports that the state of Illinois is taking control of insurer Land of Lincoln Health, which will shut down after losing more than $90 million last year.

In 2014, Land of Lincoln began as one of 23 nonprofit co-operatives that provide health insurance and received $2.4 billion in federal loans.

The idea was to provide consumers with alternatives to Blue Cross Blue Shield of Illinois and other large companies, thereby lowering the cost of healthcare by providing competition.

"It's a bad day for the marketplace in Illinois and our consumers," Jason Montrie, Land of Lincoln president and interim chief executive, told the Tribune. "This is the end."

President Barack Obama made history on Monday, becoming the first sitting president to publish a scholarly paper in a peer-reviewed academic journal, according to Fortune.

In the Journal of the American Medical Association, Obama proposed a number of reforms to the Affordable Care Act, including new legislation to lower the high cost of drugs and insurance premiums in certain markets.

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Obamacare in North Carolina has been both a success and a failure, says Politico, pointing to the Tar Heel State as an example of the Affordable Care Act's deep-seated flaws.
Politico, Obamacare, Crumbling
396
2016-23-13
Wednesday, 13 Jul 2016 10:23 AM
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