If only someone had predicted that this would happen. Oh, wait, most opposed to Ocare did predict this. Heck, the Democrats who wrote this with their insurance company buddies predicted it, too, having included the notion of “risk corridors” in the massive bill. Risk corridors is the notion where it was expected that some providers would lose their shirts, and could be reimbursed via the money coming from those who did well.
(WRAL) “Nine out of 10 people who have enrolled in health care coverage here in North Carolina have actually gotten help with the cost of that health insurance,†said Jennifer Simmons, with N.C. Navigator Consortium.
Simmons believes customers buying plans under the Affordable Care Act walk away with peace of mind.
Of course, the problem here is that while they have obtained health insurance, many of them were forced to do it because their policy that they liked was cancelled due to Ocare, forcing them into the Ocare system.
Second, it does bring peace of mind, but, when these same folks cannot afford the deductibles, what is the point of insurance? One of the major problems with Ocare is that it tries to control upfront costs, rather than reducing the cost to actually use the insurance. Do you have a car loan? Did you notice that the loan companies require that you have comprehensive and collision with deductibles no more than $500? That’s because they are concerned that people will not fix those cars if the deductible is higher than $500. The average deductible for Ocare is over $5000. If someone needs a subsidy for their health insurance plan, can they afford thousands of dollars for the deductible, along with other fees to actually obtain health care?
With car loans, those providers make sure that the cost to use the insurance are at an affordable level. Ocare just tries to keep things low on the front end with almost no concern for the back end.
Here’s the supposed point of the article, though
Health insurance companies, on the other hand, are now saying they could use a little help. The Affordable Care Act is hurting them financially, according to Blue Cross Blue Shield, because of customers buying plans under the act.
Last year, the company reported a $50 million net loss. This year, Blue Cross Blue Shield is cutting commissions for insurance agents. United Healthcare and Coventry also made changes to commissions.
I do have to wonder, is this about insurance companies who offer ACA insurance, ones who don’t, or both losing money? It was rather light on details, sadly. The headline was about “insurance companies struggling financially as ACA deadline arrives.” Which ones? We certainly know that those who offer Ocare coverage are struggling. BCBS, United, and Coventry all offer plans in various states as Ocare providers. All three offer in North Carolina, with Coventry being through Aetna. All three are struggling. But, it was not mentioned in the article.
Is the ACA causing non-ACA companies to struggle? Is it causing the aforementioned providers to struggle financially in their operations that aren’t a part of the ACA?
Of course, the few named have voluntarily offered to provide coverage through the ACA. These same insurance companies were cheerleaders for the passage of Ocare and cheered heavily when it passed in the dead of night using parliamentary shenanigans. They thought they would make some cash. Now, many are losing money. Well, that’s their problem. They made their bed, and they can lie in it. They should not receive a dime from the government to cover those losses. No bailouts. In fact, many of those “risk corridors” have been blocked by Congress.
Crossed at Right Wing News.
William,
There’s no question the new policies put downward pressure on insurance company excesses. For example:
Private health insurance companies have lots of “fat” and are having to learn to be competitive.
Do you know what commission Medicare pays its agents? $0. That’s part of the reason that Medicare’s operating costs are minimal compared to private insurance.
The US will one day adopt a single-payer system that covers all its citizens.
The real problem is that we have decided that the federal government — meaning: the taxpayers — is responsible for seeing to it that everyone has health care coverage. Or, to put it more accurately, the Democrats decided that people who actually worked for a living would have their pockets picked to provide health care for the lazy scumbags who will not work. I would prefer to let them go without health care, even if that means that they die in the street for the lack of it.
US citizens pay double for healthcare than do the residents of other modern nations. That amounts to a $1 TRILLION PER YEAR transfer of wealth from the poorest among us to the wealthiest. Is the US healthcare system twice as good as France’s? Three times better than Israel’s? Not according to the evidence. In fact, even with the outrageous amounts we spend, some 10% of our population does not have healthcare insurance.
I don’t know how much you contribute to society each year, but I pay over $100,000 per year in federal taxes + state and local (and have for a long, long time), some of which goes to support the likes of you, gc, William, dp and dave. You drive on roads that I helped build; attended schools that I supported; luxuriate in the freedoms that our military provide; collect unemployment, Social Security and Medicare coverage that I paid for; breathe the air and drink the water that I kept clean for you; pay the salaries of the judges and clerks you rely on to protect you. Spare us your whining victim song.
How much longer so you think we hard-working Americans will support your ilk and your red state laziness? You support the lazy scumbags who bilk the system of 100s of billions a year but balk at paying a couple of bucks a year to help those in need. America hates you. At least it’s good to know you’re not a Christian. Jesus would not be pleased with you.
Wow, thanks little guy, I don’t know how I’ve made it without all that you have so selflessly sacrificed.
You’re the best.
Narcissistic much?
I actually build the roads on which you drive, Jeffrey!
The cost curve has been bent, alright, but it sure hasn’t been bent downward! As Iowans caucus tonight, perhaps they’ll remember that average health insurance premiums in Iowa have increased 22.0% in just the last year.
Jeff,
I read this earlier and only now have stopped laughing. Your think you are a player at $100,00 per year? You aren’t even on the sidelines. My top payments were about $100,000 per quarter. I have worked this down with retirement.
Now, to once again answer your concerns about the cost of medical care, thank your oh so precious government. In the 80’s they felt that medical cost were excessive. So they came up with the DRG system. They assigned payment based on this confusing crap. As a consequence, their payouts went out the roof, you might blame Jindal as he was the genius that helped come up with this junk. Now, as a result of this, hospitals have to charge a given amount based on the diagnosis, not there expenses, but the diagnosis. Doctors get the same treatment, but it gets better. Doctors and hospitals are forbidden from not charging a patient. In other words we can’t give free care to helpless people. Not only that, but if you undercharge, you go to jail (a friend had that happen). So, blame our government for your concerns.
I totally agree that we should not have to pay exorbitant taxes and I am glad to see that visiting a conservative site is making you mad at having to do so. We definitely need to drop taxes and get the economy back on track, just as Reagan did. Oh, and finally, I have never, ever seen a poor individual pay for health care, in over 40 years. So, get rid of that pity party that you are on.
Now, Jeff, look at your comments. If this is how you truly think, then you are sick. If you are just trying to get a rise out of people, you aren’t and you are sick. Your comments are full of hate, racism, self loathing, in appropriate logical streams, lack of knowledge, lack of compassion, and lack of just about every positive human characteristic. I am serious, you need help.
Jeff,
I forgot, yes the DRG covers only Medicare and Medicaid, but all other insurance is indexed on the Medicare payment and all the other insurance companies use DRG or some form there of. Then as to Medicare expense, I am sure you have some off the wall web site that you refer to, but Medicare causes about a 30% increase in expenses as a result of increased personnel that we have to hire as well as expensive computer systems. Then add about another 20 to 30% in malpractice protection in the form of testing and other objective systems as well as referral and you get the idea as to the expense. And yes, I know you have other information, but I really don’t care, I have the inside knowledge and experience, you don’t.