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ObamaCare Failures Are Piling Up

- August 29, 2016

Soaring Premiums And Deductibles Combined With Failing Insurers And Co-Ops Leave The Healthcare Law In Significant Doubt Moving Forward

TOP TAKEAWAYS

  • ObamaCare has drastically reduced insurer competition as many have either pulled out of the exchange marketplace or have consolidated, leaving many Americans with few competitive options from which to choose.
  • Potentially 2.3 million, or one in five marketplace enrollees, will have just one insurer to choose from.
  • Faulty ObamaCare mandates and regulations have led to skyrocketing premiums and higher deductibles.
  • The loss of insurers and increasing premium prices has placed the ObamaCare exchange at risk.

Many Are Wondering Whether ObamaCare "Will Go Down As A Failed Experiment." "With the hourglass running out for his administration, President Barack Obama's health care law is struggling in many parts of the country. Double-digit premium increases and exits by big-name insurers have caused some to wonder whether 'Obamacare' will go down as a failed experiment." (Ricardo Alonso-Zaldivar, "Can Clinton Save Health Overhaul From Its Mounting Problems," The Associated Press," 8/28/16)

ObamaCare Experts On The Left And The Right Are Concerned That It Has Entered A Death Spiral. "Princeton University health economist, Uwe Reinhardt, is generally viewed as a friend and supporter of the Obama administration's efforts to reform the health care system. But now he tells Vox.com that the health insurance exchanges have 'entered a death spiral and are heading toward total collapse.' That is the same assessment Obamacare critic John Goodman renders in an editorial at Forbes. 'Obamacare is experiencing two kinds of death spirals: the upward spiral of price and the downward spiral of quality,' he says. ( "Health Economists On The Left And Right Are Predicting An Obamacare Death Spiral," InsuranceNews, 8/26/16)

AS LOSSES PILE UP, INSURANCE COMPANIES ARE CONSOLIDATING AND PULLING OUT OF OBAMACARE EXCHANGES

With Losses Piling Up, Many Large Insurers Are Leaving ObamaCare Exchanges In Droves. "With the fourth open-enrollment period set to begin this fall for the marketplaces set up by the Affordable Care Act, it's becoming clear that the market for health insurance has not evolved as expected, or hoped. The market is smaller than projected. The people who have bought health plans overall are sicker than predicted. And health insurers have incurred larger losses than anticipated. As a result, some large national insurance companies, including UnitedHealthcare, Humana and Aetna, plan to abandon markets across the country next year." (Guy Boulton, "Health Insurers Eye Steep Increases," Milwaukee Journal Sentinel , 8/24/16)

The Lack Of Market Competition Is Making Some Insurers Question Whether They Should Remain In ObamaCare. "Since Aetna said this month that it would withdraw from 11 of the 14 state exchanges where it markets plans, other insurers have been reassessing their situation, worried they will get stuck with more of the sickest enrollees. Some may seek to rethink their proposed premiums or where they will offer plans. 'All the other carriers say, 'what does that mean for me?'' said Paul Rooney, a vice president at eHealth Inc., a big seller of individual plans." (Anna Wilde Mathews And Stephanie Armour, "Health Insurers' Pullback Threatens To Create Monopolies," The Wall Street Journal, 8/28/16)

Up To One Third Of U.S. Counties Will Only Have One Insurer Offering Plans Through The ObamaCare Exchange. "Nearly a third of the nation's counties look likely to have just a single insurer offering health plans on the Affordable Care Act's exchanges next year, according to a new analysis, an industry pullback that adds to the challenges facing the law." (Anna Wilde Mathews And Stephanie Armour, "Health Insurers' Pullback Threatens To Create Monopolies," The Wall Street Journal, 8/28/16)

Aetna Became The Third Major Insurance Provider That Has Announced It Would Pull Out Of Obamacare Exchanges

Aetna Is The Latest Insurer To Withdraw From ObamaCare Exchanges Announcing Withdrawals In 11 Of The 15 States It Operates In. "Aetna Inc. will withdraw from 11 of the 15 states where it currently offers plans through the Affordable Care Act exchanges, becoming the latest of the major national health insurers to pull back sharply from the law's signature marketplaces after steep financial losses." (Anna Wilde Mathews, "Aetna To Drop Some Affordable Care Act Markets," The Wall Street Journal, 8/15/16)

  • Aetna Will Reduce The Number Of Counties It Offers Exchange Plans To From 778 To 242. "Aetna will reduce the number of counties where it sells exchange plans next year to 242 from 778, a dramatic turn that came a few weeks after the insurer said it expected steep losses for the year and would reconsider its participation in the market, which it had previously called an important opportunity." (Anna Wilde Mathews, "Aetna To Drop Some Affordable Care Act Markets," The Wall Street Journal, 8/15/16)

"Aetna's Move Comes After UnitedHealth Group Inc. And Humana Inc. Already Unveiled Major Reductions In Their ACA-Plan Offerings, And As More Nonprofit Cooperative Insurers Have Said They Will Fold." (Anna Wilde Mathews, "Aetna To Drop Some Affordable Care Act Markets,"The Wall Street Journal, 8/15/16)

UnitedHealthcare Announced That It Would Stop Offering Plans Through The ObamaCare Exchange In 30 States. "The company announced last month it planned to exit Obamacare exchanges in 30 states, including Florida. A UnitedHealthcare spokeswoman confirmed this week it will send out its required 180-day advanced withdrawal notice to policyholders in June. 'Individuals will continue to have access to their health benefits until the end of 2016,' said UnitedHealthcare spokeswoman Maria Gordon Shydlo. 'This decision will not impact our commercial, Medicare and Medicaid businesses in Florida.'"(Frank Gluck, "UnitedHealthcare Leaving Florida Obamacare Exchange," NewsPress.Com, 5/27/16)

Humana Announced Earlier This Year That It Will Stop Offering Plans In 8 Different States. "The company has also notified relevant DOIs of its intent to discontinue certain on-exchange Individual products across a number of geographies for 2017 and exit substantially all Affordable Care Act (ACA) compliant off-exchange Individual markets. As a result, the company's 2017 geographic presence for its Individual offerings is expected to cover no more than 156 counties across 11 states, down from 1,351 counties across 19 states in 2016. Humana expects 2017 premiums associated with ACA-compliant offerings in the range of $750 million to $1 billion versus approximately $3.4 billion projected for FY16. The rate review and approval processes with the related states are ongoing." (Humana Increases Earnings Guidance, Humana, 7/21/16)

A Lack Of Competition Could Affect Millions

According To Cynthia Cox Of Kaiser Health, The Dearth Of Competition Is Leaving Many Counties With Only 1 Potential Insurer. "As a result, the administration's promise of a menu of health-plan choices has been replaced by a grim, though preliminary, forecast: Next year, more than 1 in 4 counties are at risk of having a single insurer on its exchange, said Cynthia Cox, who studies health reform for the Kaiser Family Foundation." (Carolyn Y. Johnson, "Health-Care Exchange Sign-Ups Fall Far Short Of Forecasts," The Washington Post , 8/27/16)

Potentially 2.3 Million, Or One In Five Marketplace Enrollees, Will Have Just One Insurer To Choose From . "We estimate that 2.3 million marketplace enrollees, or 19% of all enrollees, could have a choice of a single insurer in 2017, which is an increase of 2 million people compared to 2016. Going into marketplace open enrollment in 2016, about 303,000 enrollees (2%) had a single insurer option." (Cynthia Cox And Ashley Semanskee, Preliminary Date on Insurer Exits And Entrants In 2017 Affordable Care Act Marketplaces, Kaiser Family Foundation , 8/28/16)

This Could Mean That More Than 970 Counties Could Be Subjected To No Competition. "Similarly, we estimate that the number of counties with a single marketplace insurer is likely to increase, from 225 (7% of counties) in 2016 to 974 (31% of counties) in 2017. Approximately 6 in 10 counties could have 2 or fewer marketplace insurers in 2017. The bulk of the increase in single-insurer counties is a result of the UnitedHealth exit, as the company was often the second insurer in rural areas." (Cynthia Cox And Ashley Semanskee, Preliminary Date on Insurer Exits And Entrants In 2017 Affordable Care Act Marketplaces, Kaiser Family Foundation , 8/28/16)

A Lack Of Success And Competition Between Insurers Is Leading To Expensive Insurance Options For Many. "The marketplaces were supposed to hold down prices and expand choice by fostering competition among insurers. Leemore Dafny, a professor at Harvard Business School, says that having a small number of insurers is 'likely to lead to a very pricey exchange.'" (Anna Wilde Mathews And Stephanie Armour, "Health Insurers' Pullback Threatens To Create Monopolies," The Wall Street Journal, 8/28/16)

Alabama, Alaska, North Carolina, Kansas, Oklahoma, South Carolina And Wyoming Will Only Have One Healthcare Provider. According to an analysis from the consulting firm Avalere, as of now, there will be just one insurer offering ObamaCare coverage next year in seven states: Alabama, Oklahoma, South Carolina, Wyoming, Alaska, North Carolina and Kansas. It is possible that more insurers could enter these markets before next year. (Peter Sullivan, "How ObamaCare Is Splitting In Two," The Hill, 8/22/16)

One Arizona County Will Not Have Any Insurers Making 400,000 People Ineligible From using The ObamaCare Exchanges. "In one county in Arizona, there might not be an ObamaCare plan available at all. Aetna had been the only insurer offering a plan in Pinal County. Unless federal and state officials can find another insurer to fill the void in 2017, the county's 400,000 residents will not be able to buy coverage on an ObamaCare exchange." (Peter Sullivan, "How ObamaCare Is Splitting In Two," The Hill, 8/22/16)

OBAMACARE IS LEADING INSURANCE COMPANIES TO CONSOLIDATE EVEN AS FEWER ARE OFFERING PLANS ON THE EXCHANGES

U.S. News & World Report's Jeffrey A. Singer: Since The Passage Of ObamaCare, Health Care Consolidation Has Skyrocketed. "This prediction panned out. In the six years since Obamacare's passage, there has been a surge in health care consolidation." (Jeffrey A. Singer, Op-Ed, "ObamaCare's Catch 22," U.S. News & World Report , 8/11/16)

  • Pharmaceutical Companies, Medical Practices, Large Hospitals And Insurers Are All Consolidating Due To ObamaCare. "Pharmaceutical companies are participating in an orgy of mergers and acquisitions. Physicians have merged into mega-group practices in an effort to control costs and enhance leverage in health care contracting. Hospitals have acquired private medical practices, with only 1 in 3 doctors projected to remain independent by the end of this year. Meanwhile, hospitals are consolidating into major hospital systems, many of them connected with so-called accountable care organizations established under Obamacare. And then, of course, you have numerous mergers between insurers, including the two now being targeted by the White House." (Jeffrey A. Singer, Op-Ed, "ObamaCare's Catch 22," U.S. News & World Report , 8/11/16)
  • The Wall Street Journal 's Bob Kocher : " Well, The Consolidation We Predicted Has Happened: Last Year Saw 112 Hospital Mergers (Up 18% From 2014). " (Bob Kocher, Op-Ed, "How I Was Wrong About ObamaCare," The Wall Street Journal, 7/31/16)

Losses Incurred By Obamacare Is Causing Many To Consolidate. "At the same time, retrenchment by insurers that have lost hundreds of millions of dollars means that more areas will become one-insurer markets, losing the benefits of competition. The consulting firm Avalere Health projects that seven states will only have one insurer in each of their marketplace regions next year." (Ricardo Alonso-Zaldivar, "Can Clinton Save Health Overhaul From Its Mounting Problems," The Associated Press," 8/28/16)

Consolidation Attempts By Companies Like Aetna And Humana Have Not Been Driven By Natural Market Forces But Rather The Regulatory Burden Created By ObamaCare. "But the wave of mergers unleashed in the wake of Obamacare isn't natural. It's driven not by market forces but by government regulation, red tape and mandates that make it harder for companies to survive on their own or for new entrants to challenge the status quo. In the face of this onslaught, the various components of the health care industry are consolidating, even though they have no consumer-focused reason to do so." (Jeffrey A. Singer, Op-Ed, "ObamaCare's Catch 22," U.S. News & World Report , 8/11/16)

Both Aetna And Humana Along With Anthem And Cigna Have Attempted To Consolidate Due To ObamaCare's Costly Framework. "'Irony is wasted on the stupid.' This quote, attributed to Oscar Wilde, seems fitting in light of the Obama administration's new campaign to block two blockbuster mergers between the health insurers Aetna and Humana and Anthem and Cigna. (It is also fighting hospital consolidation in many states.) The administration is rightly worried that this will lead to higher health care costs through reduced competition, yet it ignores the fact that its signature law, the Affordable Care Act, was specifically designed to foment such consolidation." (Jeffrey A. Singer, Op-Ed, "ObamaCare's Catch 22," U.S. News & World Report , 8/11/16)

A Study Performed By A Stanford Research Confirmed That Less Competition Leads To Greater Costs For Consumers. "Looking at claims paid in 2010 across 1,058 U.S. counties, Laurence C. Baker, Ph.D., of Stanford (Calif.) University, and his colleagues found that in areas with the lowest amount of physician competition (measured as the 90th percentile on the Hirschman-Herfindahl Index of economic competition), an intermediate office visit with an established patient (CPT code 99213) was between $5.85 and $11.67 higher than in areas with the greatest amount of physician competition (10th percentile). (Marry Ellen Schneider, "Studies: Practice Consolidation Drives Up Costs," ACS Surgery News , 10/21/14)

AS INSURERS CONSOLIDATE AND FEWER OPTIONS ARE GIVEN TO CONSUMERS, PREMIUMS ARE SKYROCKETING

As We Roll Into 2017, Premium Hikes Look To Be Brutal. "Next year's health insurance sign-up season starts a week before the Nov. 8 election, and the previews have been brutal. Premiums are expected to go up sharply in many insurance marketplaces, which offer subsidized private coverage to people lacking access to job-based plans." (Ricardo Alonso-Zaldivar, "Can Clinton Save Health Overhaul From Its Mounting Problems," The Associated Press," 8/28/16)

  • Premiums Are Expected To Continue To Increase Moving Forward. "Next year's health insurance sign-up season starts a week before the Nov. 8 election, and the previews have been brutal. Premiums are expected to go up sharply in many insurance marketplaces, which offer subsidized private coverage to people lacking access to job-based plans." (Ricardo Alonso-Zaldivar, "Clinton Could Face Mounting Problem With Health Overhaul," The Miami Herald, 8/29/16)

According To Independent Analyst Charles Gaba, Proposed ObamaCare Hikes Average 24% "Average rate request of 24 percent this year. That's according to findings from independent analyst Charles Gaba, who has crunched the numbers for insurers participating in the ACA exchanges in all 50 states, including a handful of recent updates. For instance, Cigna and Humana recently revised their rate requests in Tennessee, and the new filings are dramatically higher. Cigna is now asking for a 46 percent average increase, up from 23 percent, and Humana is requesting a 44 percent increase, up from 29 percent, The Tennessean reported on Friday." (Dan Diamond, "Obamacare Hikes: Average Rate Request Of 24 Percent," Politico, 8/15/16)

The Associated Press Headline: "Significant Premium Hikes Expected Under Obama Health Law" For 2017. (Ricardo Alonso-Zaldivar and Tom Murphy, "Significant Premium Hikes Expected Under Obama Health Law," The Associated Press , 4/28/16)

  • "Insurers Say The Law's Coverage Has Been A Financial Drain" Setting The Stage For Double Digit Premium Hikes. "Insurers say the law's coverage has been a financial drain for many of them, and they're setting the stage for 2017 hikes that in some cases could reach well into the double digits." (Ricardo Alonso-Zaldivar and Tom Murphy, "Significant Premium Hikes Expected Under Obama Health Law," The Associated Press , 4/28/16)

Former Obama CMS Official Michael Adelberg: "It Only Makes Sense That Most Exchange Insurers Will Request Significant Rate Increases For 2017." "'Given that most carriers have experienced losses in the exchanges, often large losses, it only makes sense that most exchange insurers will request significant rate increases for 2017,' said Michael Adelberg, a former CMS official under President Obama and now a consultant at FaegreBD." (Peter Sullivan, "Insurers Warn Losses From Obamacare Are Unsustainable," The Hill, 4/15/16)

A Lack Of Competition And Increasing Premiums Has Hurt The Middle Class In Need Of Affordable Healthcare. "The people who bought those health plans also are older and sicker than expected, said Brian Blase, a senior research fellow at the Mercatus Center at George Mason University. Second, the health plans on the marketplaces are relatively expensive for everyone but those with the lowest incomes. 'We are not seeing evidence that the plans are attractive for people with middle-class incomes,' Blase said. The cost has dissuaded healthy people from buying health plans - and healthy people are needed to offset the cost of people who are not." (Guy Boulton, "Health Insurers Eye Steep Increases," The Milwaukee Journal Sentinel , 8/24/16)

Alabama

Blue Cross Blue Shield Of Alabama Is Seeking An Average Rate Increase Of 39%. "Blue Cross Blue Shield of Alabama is seeking an average rate increase of 39 percent on individual plans offered through the Obamacare marketplace, according to the Centers for Medicare & Medicaid Services. The proposed rate hikes will affect more than 160,000 people in Alabama who purchase insurance through the federal exchange, or about 5 percent of Blue Cross membership." (Amy Yurkanin, "Blue Cross proposes rate hike of nearly 40 percent on some Obamacare plans," AL.com, 8/8/16)

  • Blue Cross Blue Shield Is The Only Insurance Company Offering Individual Plan In Alabama. "Blue Cross is the only insurance company that will offer Alabamians individual insurance plans through the exchange next year after the departure of Humana and UnitedHealth. Those departures were announced earlier this year." (Amy Yurkanin, "Blue Cross proposes rate hike of nearly 40 percent on some Obamacare plans," AL.com, 8/8/16)

Arizona

Blue Cross Blue Shield Of Arizona Proposed A Premium Increase Of 65 Percent For 2017. " Blue Cross Blue Shield of Arizona requested a 65 percent increase for 2017 for an Obamacare marketplace plan, the biggest in the state, according to a report from azcentral.com." (Robert King, "Sticker Shock: Arizona Obamacare Insurer Asks For 65 Percent Rate Hike," The Washington Times , 06/13/16)

Phoenix Health Plans Proposed A Premium Increase of 60 Percent For 2017. "Another insurer, Phoenix Health Plans, wants a 60 percent increase and other insurers are calling for rate hikes of nearly 30 percent." (Robert King, "Sticker Shock: Arizona Obamacare Insurer Asks For 65 Percent Rate Hike," The Washington Times , 06/13/16)

Colorado

Coloradans Are Facing "Historically Large Health Insurance Premium Increases." " Four years after the Affordable Care Act transformed the health insurance market in Colorado, thousands of Coloradans learned Monday they might very well be on the hook for historically large health insurance premium increases come next year. The Colorado Division of Insurance released its preliminary rate adjustment proposals Monday morning, and the figures are destined to become fodder for politicians who have been sharply critical of Obamacare's inability to reign in health care costs." (Chris Vanderveen, "Proposed Health Insurance Rate Increases Released For Colorado," KUSA, 06/06/16)

Golden Rule Is Seeking A 40.6% Premium Increase In 2017. (Chris Vanderveen, "Proposed Health Insurance Rate Increases Released For Colorado," KUSA, 06/06/16)

Anthem Blue Cross And Blue Shield Is Seeking A 26.8% Premium Increase For Individual Plans In 2017." (Chris Vanderveen, "Proposed Health Insurance Rate Increases Released For Colorado,"KUSA, 06/06/16)

Florida

Florida's Proposed Insurance Premium Increases For 2017 Averaged 13%. "Nearly a dozen health insurers are proposing rate increases averaging 13 percent for 2017 Florida plans sold on the exchanges created under President Barack Obama's health care law, but that won't necessarily mean big consumer price hikes." ("Florida Insurers Seek Rate Increases For Obamacare Plans," The Associated Press, 05/26/16)

Humana Proposed A 44% Insurance Premium Increase On One Plan For 2017. "The largest increase is a whopping 44 percent requested by one Humana plan." ("Florida Insurers Seek Rate Increases For Obamacare Plans," The Associated Press, 05/26/16)

Florida's Largest Insurer Proposed A Premium Increase if 14% For 2017. "Florida Blue, the state's largest insurer, requested a statewide average increase of 14 percent, compared to the 9 percent hike it won last year." ("Florida Insurers Seek Rate Increases For Obamacare Plans," The Associated Press, 05/26/16)

Georgia

Humana Is Expecting A 67% Increase In Georgia Next Year. "Twenty-seven percent of individual market shoppers in Georgia are covered by Humana plans. The company has been approved to hike rates an average of 67 percent next year." (Paige Cunningham, "Four states with massive Obamacare hikes," The Washington Examiner, 8/29/16)

Illinois

Some Proposed Premium Increases Are Up To 55 Percent In Illinois. "The Illinois Department of Insurance said Wednesday it has submitted rate increases to the federal government that for some types of plans average 43 percent to 55 percent." (Lisa Schencker, "Illinois Obamacare Rates Could Soar As State Submits Insurance Premium Increases To Feds," Chicago Tribune, 8/25/16)

Iowa

The Weighted Average Proposed Premium Increases For Iowa Insurers In 2017 Is Roughly 32 Percent. "The average weighted rate hike tops 56% in Tennessee. In Oklahoma it's 53%, and Iowa 32%." (Editorial, "ObamaCare Rate Shocks Are Here, And They're Getting Worse," Investor's Business Daily, 06/15/16)

Michigan

Humana Proposed A 50 Percent Premium Increase For 2017 On Their "Low-Cost" Silver Plan. "This year, the nation's fifth-largest insurer offers the cheapest bronze and silver plans in Michigan's largest market, including Detroit. But Humana has filed for a 50% premium hike for its low-cost silver plan. The unsubsidized cost for a 40-year-old will jump from $210 a month to $315, if approved. On top of that, the maximum out-of-pocket cost for plan members will rise 9%, to $7,150 from $6,300 in 2016." (Jed Graham, "Humana Seeks 50% ObamaCare Premium Hike In Michigan," Investor's Business Daily, 05/11/16)

"Meanwhile, Humana Wants A 38% Premium Increase For Its Lowest-Cost Bronze Plan, From $178 A Month To $246." (Jed Graham, "Humana Seeks 50% ObamaCare Premium Hike In Michigan," Investor's Business Daily, 05/11/16)

"Health Alliance Plan, A Subsidiary Of The Henry Ford Health System, Has Requested 30% Premium Hikes For Its Least Expensive Bronze And Silver Plans" For 2017. (Jed Graham, "Humana Seeks 50% ObamaCare Premium Hike In Michigan," Investor's Business Daily, 05/11/16)

New Hampshire

For 2017, Minuteman Health, One Of New Hampshire's Largest Insurers, Announced It Could Seek Rate Increases Of More Than 45 Percent. "Minuteman Health, one of the larger insurers in New Hampshire that offer coverage to individuals under the Affordable Care Act, announced Monday that it could raise its rates by more than 45 percent in 2017." (Bob Sanders, "Minuteman Health Seeks Up To 45% NH Rate Hike For 2017," New Hampshire Business Review, 4/18/16)

New York State

2017 Premiums On Individual Plans Will Increase On Average By 16.6 Percent. "In a statement on Friday announcing 2017 premiums, NY's Department of Financial Services (DFS) said after weighing insurer requests, the state settled on an average hike of 16.6 percent for individual exchange users in the state, while small group users will see a lower average increase of over 8 percent." (Javier E. David, "Obamacare Users In New York Brace For Double-Digit 2017 Premium Hikes," CNBC, 8/6/16)

North Carolina

Aetna Is Seeking A 24.5 Percent Average Premium Increase In North Carolina. "In filings made public Tuesday, Blue Cross and Blue Shield of North Carolina said it wants to raise rates by an average of 18.8 percent, and Aetna is looking to increase premiums by 24.5 percent on average. Both health insurers blame rising drug costs, increasing medical expenses and customers insured under the ACA who cost more to treat than other people." (John Murawski, "NC Health Insurers Propose ACA Rate Increases For 2017," News Observer, 5/31/16)

Blue Cross Blue Shield Of North Carolina Has Requested An 18.8 Percent Average Premium Increase. "In filings made public Tuesday, Blue Cross and Blue Shield of North Carolina said it wants to raise rates by an average of 18.8 percent, and Aetna is looking to increase premiums by 24.5 percent on average. Both health insurers blame rising drug costs, increasing medical expenses and customers insured under the ACA who cost more to treat than other people." (John Murawski, "NC Health Insurers Propose ACA Rate Increases For 2017," News Observer, 5/31/16)

Ohio

Ohio Insurance Company Forecasts Skyrocketing Premiums, Collapse Of The Obamacare Exchange. "MetroHealth unveiled the program as it prepares for its annual stakeholders meeting in Cleveland today. The event offers a snapshot of the health system's financial performance and strategy for the future. Boutros said Wednesday that the Select Direct program could serve as an alternative to Obamacare, noting that the cost of coverage is bound to rise as insurers confront losses on their ACA plans. He even went so far as to forecast the collapse of the federally facilitated exchange that supports the law. Ohio's Obamacare cooperative, InHealth Mutual, announced plans to close last month. 'My view is that, after Obama, the exchange is going to collapse,' Boutros said. 'I don't think there's going to be political support to continue at those rates. Those rates are going to go up, so there's got to be another option.'" (Casey Ross, "As Obamacare plans struggle, MetroHealth offers an alternative to individual insurance," The Plain Dealer, 06/09/16)

  • Premium Increases From Some Insurers Will Reach 40 Percent. "Meanwhile, this year's rate requests by insurers include several double-digit increases, with some calling for hikes on some plans as high as 40 percent in certain parts of the state. The numbers are causing some executives to wonder publicly whether the marketplace has a future." (Casey Ross, "Obamacare In Ohio: Rate Of Uninsured Drops, But Premiums Likely To Rise,"The Plains Dealer, 7/14/16)

Pennsylvania

"The Statewide Average Rate Increase Sought By Health Insurers Was 23.6 Percent, According To The State Department of Insurance." (Kris B. Mamula, "Insurers Seek Hefty Rate Increases For ACA Coverage," The Pittsburgh Post-Gazette , 05/25/16)

"Highmark Inc., One Of The Ten Largest Health Insurers In The United States That Serves Pennsylvania, Is Seeking To Boost Rates On Its Obamacare Plans By 48.1 Percent Next Year." (Ali Meyer, "Pennsylvania Insurer Seeks to Boost Obamacare Rates by 48.1 Percent," The Free Beacon, 05/26/16)

Tennessee

Tennessee Is Expecting BlueCross Blue Shield To Increase Premiums By An Average of 62%. "Insurance regulators are allowing the state's Blue Cross Blue Shield plans to raise prices by 62 percent on average. The plans cover the vast majority of Tennessee's Obamacare enrollees, with 83 percent individual market share." (Paige Cunningham, "Four states with massive Obamacare hikes," The Washington Examiner, 8/29/16)

Virginia

For 2017, "The Average Weighted Premium-Hike Request Appears To Be 17.9%..." In Virginia. "Overall, the average weighted premium-hike request appears to be 17.9%, says Charles Gaba of ACASignups. The rate increases may turn out to be quite small for those who qualify for subsidies. The average premium hike for the subsidized population was just 4% in 2016, the Obama administration said on Tuesday." (Jed Graham, "Virginia Insurers Seek 18% Obamacare Premium Hike,"Investor's Business Daily, 4/13/16)

2016 DEDUCTIBLES SKYROCKTED, WITH NO END IN SIGHT

Skyrocketing Deductibles Make ObamaCare Unusable For Many. "But for many consumers, the sticker shock is coming not on the front end, when they purchase the plans, but on the back end when they get sick: sky-high deductibles that are leaving some newly insured feeling nearly as vulnerable as they were before they had coverage. 'The deductible, $3,000 a year, makes it impossible to actually go to the doctor," said David R. Reines, 60, of Jefferson Township, N.J., a former hardware salesman with chronic knee pain. "We have insurance, but can't afford to use it.'" (Robert Pear, "Many Say High Deductibles Make Their Health Law Insurance All But Useless," The New York Times , 11/14/15)

Average Deductibles Have Increased From "$900 In 2010 For An Individual Plan To Above $1,300 This Year" While Small Business Employees Have Even Higher Deductibles. "Those workers' deductibles have climbed from a yearly average of $900 in 2010 for an individual plan to above $1,300 this year, while employees working for small businesses have an even higher average of $1,800 a year." (Reed Abelson, "Health Insurance Deductibles Outpacing Wage Increases, Study Finds," The New York Times , 9/22/15)

  • "One In Five Workers Has A Deductible Of $2,000 Or More." (Reed Abelson, "Health Insurance Deductibles Outpacing Wage Increases, Study Finds," The New York Times , 9/22/15)

2016 Deductibles Increased Hundreds And In Some Cases Thousands Of Dollars

In 2016, 41 States Saw Deductible Increases With 17 States Experiencing Double Digit Increases. "These increases were deep and widespread. In total, 41 states saw average deductibles increase, with 17 states - representing 45 percent of total exchange enrollment - seeing double-digit spikes. The largest increases were in Mississippi (39 percent), Washington (31 percent), South Carolina (26 percent), Louisiana (24 percent), Florida (23 percent), Michigan and Vermont (22 percent), Arizona (21 percent), and North Carolina and Rhode Island (20 percent)." (Nathan Nascimento, "The Latest Problem Under The Affordable Care Act: Deductibles," The National Review, 04/12/16)

2016 Mississippi ObamaCare Deductibles Increased An Average Of $1395. ("2016 Obamacare Deductible Increase Tracker," Freedom Partners, 03/02/16)

2016 Florida ObamaCare Deductibles Increased An Average Of $990. ("2016 Obamacare Deductible Increase Tracker," Freedom Partners, 03/02/16)

2016 Washington ObamaCare Deductibles Increased An Average Of $809. ("2016 Obamacare Deductible Increase Tracker," Freedom Partners, 03/02/16)

2016 South Carolina ObamaCare Deductibles Increased An Average Of $735. ("2016 Obamacare Deductible Increase Tracker," Freedom Partners, 03/02/16)

2016 Louisiana ObamaCare Deductibles Increased An Average Of $673. ("2016 Obamacare Deductible Increase Tracker," Freedom Partners, 03/02/16)

2016 Arizona ObamaCare Deductibles Increased An Average Of $664. ("2016 Obamacare Deductible Increase Tracker," Freedom Partners, 03/02/16)

2016 North Carolina ObamaCare Deductibles Increased An Average Of $602. ("2016 Obamacare Deductible Increase Tracker," Freedom Partners, 03/02/16)

2016 Nebraska ObamaCare Deductibles Increased An Average Of $539. ("2016 Obamacare Deductible Increase Tracker," Freedom Partners, 03/02/16)

2016 Michigan ObamaCare Deductibles Increased An Average Of $492. ("2016 Obamacare Deductible Increase Tracker," Freedom Partners, 03/02/16)

2016 Wisconsin ObamaCare Deductibles Increased An Average Of $477. ("2016 Obamacare Deductible Increase Tracker," Freedom Partners, 03/02/16)

2016 Ohio ObamaCare Deductibles Increased An Average Of $379. ("2016 Obamacare Deductible Increase Tracker," Freedom Partners, 03/02/16)

2016 Indiana ObamaCare Deductibles Increased An Average Of $355. ("2016 Obamacare Deductible Increase Tracker," Freedom Partners, 03/02/16)

2016 New Hampshire ObamaCare Deductibles Increased An Average Of $345. ("2016 Obamacare Deductible Increase Tracker," Freedom Partners, 03/02/16)

2016 Virginia ObamaCare Deductibles Increased An Average Of $285. ("2016 Obamacare Deductible Increase Tracker," Freedom Partners, 03/02/16)

2016 Pennsylvania ObamaCare Deductibles Increased An Average Of $254. ("2016 Obamacare Deductible Increase Tracker," Freedom Partners, 03/02/16)


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