Insurer Drops New York Medicaid Coverage For 53,000 Over Unsustainable Losses

The Daily Caller ^ | July 18, 2014 | by Sarah Hurtubise

[Oldeconomybuyer]

Blue Cross Blue Shield in New York is dropping out of the state’s Medicaid program due to serious financial losses, dropping 53,000 New Yorkers from coverage.

Medicaid managed care patients in Erie, Chautauqua, Cattaraugus, Orleans, Wyoming and Allegany counties of New York will have until Oct. 31 to find new coverage. Blue Cross Blue Shield is one of the top Medicaid insurers in New York.

Stephen T. Swift, the insurer’s chief financial officer, denied that the decision it driven by Obamacare and said that while the company has been trying to fix the failing Medicaid business for years, it’s just unable to continue taking the losses.

But the cuts come at a very inopportune time for the Medicaid program.

[ArmstedFragg]

Not directly driven by Obamacare, but the restrictions imposed on their other lines by Obiecare make it impossible for them to offset their Medicaid losses any more. Another example of the consequence of making public policy without understanding all of the interactions between the parts of the business you’re trying to regulate.

[headstamp 2]

This is just the canary in the coal mine for what’s to come down the road.

[Dapper 26]

Didn’t Blue Cross and other providers have a cozy relationship with Obamacare? Or, was it more like cooperate or disappear? In any case, all of this was foreseen by those who know the business.

[SierraWasp]

"In any case, all of this was foreseen by those who know the business."

Oh brother!!! Isn't that ever the truth! I've been writing health insurance on old people since before there ever was a "Great Society" and "Medicare" and "Medicaid" and "commissions on aging," etc., etc., yada, yada, yada!!!

[RetiredTexasVet]

Having all carriers drop out of the health care insurance business is exactly what the end game of CommieCare is about. When they all drop out, you then have the government seize control of healthcare (for the good of the collective) and turn it into some bastard operation on the order of the British National Healthcare System. When controlling healthcare, the elite rulers can easily eliminate any dissent by withholding care for anyone who incurs their disfavor.