- Oct 17, 2015
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The Affordable Care Act is in deep trouble and may be repealed by the new Republican dominated Congress. The reason for the "deep trouble" seems to lie directly with the old Republican Congress.
The two quotes above are extracted from an article written by a former health insurance CEO. The full article is found at:
I’m a former health insurance CEO and this is what Obamacare repeal will do
Even though the ACA was essentially a copy of a Republican plan, it seems to me that the GOP Congress acted to ensure that it would fail. Why? To spite President Obama. They have been blocking or stalling almost everything that the President has attempted over the past eight years. What a total waste of time and effort! From the same source:
To entice insurers into the market, the ACA also offered well-established methods to reduce risk. For example, it built in protections for insurers who enrolled especially sick people. It also provided backup payments for very high-cost cases and protected against big losses and limited big gains in the first three years.
But when the time came to pay up for risk reduction in the Obamacare exchanges, Congress reneged and paid only 12% of what was owed to the insurers. So, on top of the fact that the companies had to bear the risk of unknown costs and utilization in the startup years, which turned out to be higher than they expected, insurers had to absorb legislative uncertainty of whether the rules would be rewritten.
It is no wonder that this year they have dramatically increased premiums, averaging 20%, to compensate for the extra risk they didn’t factor into the original lower rates. In contrast, underlying health costs are rising at about 5%.
The two quotes above are extracted from an article written by a former health insurance CEO. The full article is found at:
I’m a former health insurance CEO and this is what Obamacare repeal will do
Even though the ACA was essentially a copy of a Republican plan, it seems to me that the GOP Congress acted to ensure that it would fail. Why? To spite President Obama. They have been blocking or stalling almost everything that the President has attempted over the past eight years. What a total waste of time and effort! From the same source:
Like the dog that finally caught the car it had been chasing and doesn’t know what to do, what comes next for the administration and Congress isn't clear. But we shouldn’t fool ourselves to think it will be easy or painless. Otherwise, it may be that the great experiment trying to establish a viable market for individual insurance — ironically long a conservative objective — will end in the chaos of what came before.