Shockingly, Insurance Companies Are Struggling Financially Under Obamacare

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.

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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 Pirate’s Cove. Follow me on Twitter @WilliamTeach.

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