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Obamacare’s October Surprise for Democrats

Guess what? Health insurance rates are going up, possibly by double digits, just weeks before Election Day.

From Politico:

The last thing Democrats want to contend with just a week before the 2016 presidential election is an outcry over double-digit insurance hikes as millions of Americans begin signing up for Obamacare. But that looks increasingly likely as health plans socked by Obamacare losses look to regain their financial footing by raising rates . . .

“I think a lot of insurance carriers expected red ink, but they didn’t expect this much red ink,” said Greg Scott, who oversees Deloitte’s health plans practice. “… A number of carriers need double-digit increases.” . . .

Blue Cross and Blue Shield plans, which dominate many state exchanges, saw profits plummet by 75 percent between 2013 and 2015, according to an analysis by A.M. Best Co. A chief reason for the financial woes: “the intensity of losses in the exchange segment.” Health Care Service Corporation, which operates Blue plans in five states, dropped out of New Mexico’s exchange for this year after regulators refused to approve rate hikes as big as the company sought. In Texas, Illinois and two other states where HCSC does business, medical costs for individual customers exceeded premiums by more than $1.3 billion last year.

One big reason is lower-than-expected enrollment of younger, often healthier people who balance the costs of those who require more costly care. Roughly 12.7 million Americans signed up for Obamacare plans during the most recent open enrollment period. That’s far below the 22 million projected by the Congressional Budget Office, and it’s certain to decline as some drop out.

This is as predicted. Obamacare is not just a program for the uninsured, it’s a tool to put insurers out of business by forcing them into coverage decisions that don’t make economic sense. The insurers greedily grasped at the dazzling prospect of millions of new customers, without accurately accounting for the inability of these new clients to pay up.

And now, they’re stuck trying to make paying customers foot the bill.

Maybe they thought the government would understand this and help them by changing the rules. But the government doesn’t care about their bottom line, and it doesn’t understand saving the golden goose laying the eggs. What it will do is take over the system should the private sector fail and then run it at a loss, like the government does with any enterprise in which it is engaged.

And that is what Obamacare is really all about.

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12 Responses to Obamacare’s October Surprise for Democrats

  1. In other words, ObamaCare is doing exactly what it is designed to do: costing more, delivering less healthcare and causing more chaos and dissatisfaction in our healthcare delivery system. That’s a home run for Obama. He must be very happy about this.

  2. My small business healthcare through United, for a family, has gone from $900 to $2200 per month since the ACA was instituted. United is about to pull out of the ACA plan and even with the huge increases, they may go under.
    This is the number one plan in the USA.

    We recently changed to another plan, with a family rate of $1500. Better, but we wonder how long it will last.

    The premise of the ACA was hidden… remember you can keep your plan? Lie #1. Remember reduced rates? Lie #2. Remember the young will help fund the ACA? Lie #3.

    Obama changed the law after it was enacted…that is the only truth that should matter.

    H

      • YES BIG !
        Pelosi said that we have to pass it before you can see what’s in it.
        That’s BIG !
        These bastards betrayed the United States by passing a law that very few of our “representatives” ever read.
        And then the SC ruled that it was a tax.

        The congress, 535 of them represent 230 million people that work to pay their salaries and then they slap us in the face by passing this behemoth catastrophe that is designed to drive people to accept single payer, more government control of our lives and the further control over private sector insurance companies.

        Isn’t it about time that we took our Country back, and trash the people that took it down ?

        I think it is.

        The politicians that say they are on our side are liars.

        For instance,…can you increase your salary ?
        Can you resist being forced to abide by the law of the ACA ?

        Many of them say that they are public servants, we’re here to help you.
        That’s BS.

        WE are their servants as it stands today, but it’s time we told them who are the masters.

        Take notes, remember who lied to you and fire them.

        This is our Country.

        • AFVet,
          You failed to mention the Cadillac healthcare plans that Congress enjoys at taxpayer expense!

          The congress, 535 of them represent 230 million people that work to pay their salaries and then they slap us in the face by passing this behemoth catastrophe that is designed to drive people to accept single payer, more government control of our lives and the further control over private sector insurance companies.

          • Yes Bonnie, the very fact that they exempted themselves and their families from the ACA tells me that they are a bunch of lying sniveling opportunists.

            I would like to see congress and the SC, and the president have to live under the same rules they pass for us.

            Fair is fair.

        • Agree with everything you said. I spent over 20 years in healthcare administration and saw the failures of Obamacare coming from 1000 miles away. BUT, this is the ONE time it’s not all 535 of them. The only saving grace from this monstrosity is that not one Republican voted for it. This is all democrat and the piper will be showing up to get paid this October. Oh how sweet it is!