Bloomberg News (8/17/16,) reports the four largest health insurers in the US have posted hundreds of millions of dollars in losses on their Affordable Care Act exchange businesses. Data show UnitedHealth is predicting a loss of $850 million this year, while Aetna, Anthem, and Humana are each expected to lose about $300 million. As a result of these losses, the insurers are exiting ACA marketplaces.
Meanwhile, the Los Angeles Times (8/17, Petersen, Sisson) reports Aetna’s decision to pull out of the ACA exchanges in 11 of 15 states where it is currently operating, as with other insurers’ moves out of certain markets, “could make this fall’s enrollment period crucial” to the Affordable Care Act. Experts “disagree on whether the latest pullbacks and price hikes, floating in a sea of election-year politics, signal that the nation’s health insurance exchanges have reached a terrible tipping point — or whether they are simply seeking a new state of equilibrium.”
Sarah Collins, the Commonwealth Fund Vice President for Healthcare Coverage and Access, “said she believes the Obamacare markets are maturing rather than dying,” noting that “major carriers including Blue Cross, Blue Shield and Kaiser Permanente have not pulled out of the Obamacare exchanges.”
Bloomberg News: “While Obamacare can compel individuals to buy insurance—a mandate upheld by the U.S. Supreme Court in 2012—the law has no authority to force insurance companies to offer plans through its exchanges.”
Obamacare advocates had hoped that big government subsidies to consumers would persuade healthy people to sign up for the ACA plans. But the policies have largely been taken out by older, less healthy people who are more expensive to insure. “What we are left with … is a highly subsidized program for relatively low-income people,” says Dan Mendelson, the CEO of consulting firm Avalere Health. “We’re not getting to the broader vision of a robust private market structure that enables a broad swath of Americans to purchase their insurance.”
The fate of the exchanges rides, in part, on the November election. While Donald Trump has said he’ll repeal Obamacare, he hasn’t said exactly what would replace it. Hillary Clinton has backed the creation of a public insurance plan, as well as offering people 55 and older the option of buying Medicare coverage.
Blogfinger Medical Commentary. Paul Goldfinger, MD.
In 2013 I began to express concern over the real possibility that quality of care would decline in some ways under the Affordable Care Act (ACA). Some of those concerns are now being borne out, and many of you have been experiencing deterioration in quality. Below is a sample from the Kaiser Health News:
“Kaiser Health News (8/16/16) reports that a new study conducted by researchers at the National Women’s Law Center found that many health plans offered through Affordable Care Act marketplaces include ‘language that allows them to refuse to cover a range of services, many of which disproportionately affect women.’”
I know little about medical economics, but I will continue to follow quality care issues which are presently being studied in many research trials.