Skip to comments.Obamacare 'Bailout' For One Insurer Will Cost Up To $450 Million In 2014
Posted on 02/06/2014 10:03:33 AM PST by Hojczyk
Now we have some hard numbers. Humana announced that it expects to tap the three risk adjustment mechanisms in ObamaCare for between $250 and $450 million in 2014. This amounts to about 25 percent of the insurers expected exchange revenue. This money is needed to offset losses that the insurer will take as a result of slower enrollment in its ObamaCare plans, and a skewed risk pool that weighs more heavily toward older and less healthy members than it originally budgeted.
More than half of the money will come from the $25 billion reinsurance pool that ObamaCare provides (collected through a tax on employer-sponsored health plans). The other half will come mostly from the risk corridors. Humana is expected to book the money as revenue to offset shortfalls between what it collects in exchange premiums and pays out in medical claims.
The company blamed the Obama Administrations decision late last year to extend grandfathering of individual market plans for the overall deterioration in the risk pool. That means that Humana (like other insurers) was counting on people from the individual market being forced to transition into ObamaCare plans. Its widely perceived that the Obama Administration counted on that migration as well. But Humanas statement was a very clear expression of this expectation.
(Excerpt) Read more at forbes.com ...
Notice the House Republicans are doing nothing on this.
Instead of symbolically repealing birth control mandates they should have been going for this low hanging fruit.
The ACA was always a giveaway to the health insurance companies, now we know just how much of a giveaway it was.
They are going to tap the risk adjustment mechanisms for 450 million dollars with only 202,000 people signed up so far, 80% of whom qualify for subsidies
And still make a “profit.”
The sleaze disgusts me. We need to make this risk subsidy go away for 2015. It is immoral to use tax dollars from working Americans to subsidize the bad business decisions of companies that are in bed with those who hold power.
Crony Capitalism at it finest.
That means the already bloated owebamacare prices will go up 25+% next year.
Call your favorite Liberal and get in his or her face with the fact that Obama is about to subsidize the BIG EEEEEEEEEVIL INSURANCE COMPANIES.
My other fear is that this fall we might see another group of policies canceled as “non-conforming” and those would be employer plans. When that happens, then the SWHTF.
People in the know, understand that ObamaCare is a costly mess (including elected officials), those that aren't in the know, don't care until it impacts their paycheck, their ability to get a doctor/hospital to see them, or they loose their current insurance plan and find out the “superior” government plan will cost a lot more and provide a lot less.
The biggest problem with ObamaCare, in my opinion, is that the majority of American’s this is designed to help, live pay check to pay check with no significant savings. They do not have the money for the first month's premium. The don't have saved money to cover their deductibles that need to be paid first. That means the system that assumes a financially prudent person, is just not going to work.