New ObamaCare Angst as Top Insurer Threatens to Bail
20th November 2015
A threat by the nation’s largest health insurer to pull out of ObamaCare is a sign of the industry’s growing angst about the viability of the federal exchanges, sources close to the industry say.
UnitedHealthcare’s warning sent new shockwaves across the healthcare sector after weeks of mounting anxiety among private insurers whose participation in the exchanges is critical to the viability of the president’s signature law.
In the last month alone, insurers have learned that the Obama administration has significantly lowered its expectations for new customers and will have far fewer federal dollars to help cushion insurer losses.
My, what a surprise! Aren’t you surprised? I’m sure surprised.
“We’ve been very clear with the Administration about the serious challenges facing consumers and health plans in this exchange market,” Marilyn Tavenner, the CEO of the powerful insurer group America’s Health Insurer Plans, wrote in a statement.
Leading insurers have already given strong warnings that the Obama administration needs to step up its funding commitment for companies that are still struggling with less-healthy — and therefore more expensive — customers. Some believe that Thursday’s announcement by UnitedHealth could be an attempt to pressure the administration into action.
Gee, it costs more than predicted and doesn’t work as well. Who could have seen that coming?