The Obama administration is touting early success in enrollment for Obamacare for 2016. (Dec. 18 article, “Obamacare enrollment surges to nearly 6 million.”)
In truth, the program is headed toward anything but success. During this year we have heard that more than half of the 23 approved health-care cooperatives are planning to close up shop due to substantial losses. In addition to this, one of the country’s largest for-profit Obamacare insurer, United Health Care. plans to opt out in 2017 because of large, projected losses, as well. Many more insurers will follow.
The reason for these losses are many fold, but are mainly because of the government subsidies, in the event they had operating losses were only a fraction of what they were promised. They are between a rock and a hard place in that they dare not raise their already sky high deductibles and premiums to cover these losses. Another reason is, as we expected, the plans have attracted an unusual number of sick and Medicaid enrollees in states that did not expand Medicaid. It looks like the more people that sign up for the Affordable Care Act the more the insurance companies lose. I’ve long said that it was evident that this whole scheme was designed to fail so the Democrats could come to the rescue with a government “single payer system” We are well on our way toward that prediction.
Don Williamson
Arlington
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