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The Urgency Of Repealing And Replacing Obamacare

- May 5, 2017

OBAMACARE CONTINUES TO WREAK HAVOC ON THE INSURANCE MARKETPLACE AS MORE PROVIDERS PULL OUT

Last Year Began The Seccession Of Health Insurance Providers From The Obamacare Exchange

Early Last Year, United Health Group Stated They Would "Exit Most Of The 34 States Where It Offer[ed] Plans On The Affordable Care Act Insurance Exchanges." "UnitedHealth Group, the nation's largest health insurer, said Tuesday that in 2017 it will exit most of the 34 states where it offers plans on the Affordable Care Act insurance exchanges. 'We will be down to a handful of states that we will be actively participating in the exchanges,' Stephen J. Hemsley, chief executive officer of UnitedHealth Group said in an earnings call, noting that the small market size and greater expense of patients insured through the marketplaces led the insurer to make the decision.'" (Carolyn Y. Johnson, "UnitedHealth Group To Exit Obamacare Exchanges In All But A 'Handful' Of States," The Washington Post , 4/19/16)

Aetna Limited Their Coverage To "…Only 242 Counties In Four States, Down Almost 70 percent From The 778 Counties In 15 States…" "On Monday, Aetna said it will sell individual insurance policies in only 242 counties in four states, down almost 70 percent from the 778 counties in 15 states where the company markets Obamacare plans this year." (Alison Kodjak, "Aetna Joins Other Major Insurers In Pulling Back From Obamacare," NPR , 8/16/16)

Obamacare Continued To Unravel As Five States Were "…Left With A Single Insurer In The Obamacare Exchanges…" "South Carolina becomes the fifth state to officially be left with a single insurer in the Obamacare exchanges, with Alabama, Alaska, Oklahoma, and Wyoming. Based on current projections, North Carolina and Kansas could also be left in the same boat." (Bob Bryan, "There Are Now 5 States with Only One Insurance Company Offering Obamacare Plans," Business Insider , 10/4/16)

The Abandonment Of Various Insurance Providers Foreshadowed The Future Of The Healthcare Marketplace As More Health Insurance Companies Announced They Would Be Exiting The ACA Marketplace In 2018

The Failings Of Obamacare Continued As Humana Announced That It "…Would No Longer Offer Health Insurance Coverage In The State Marketplaces…" Forcing Many Out Of Their Insurance Plan. "Humana announced on Tuesday that it would no longer offer health insurance coverage in the state marketplaces created under the federal health care law, becoming the first major insurer to cast a no-confidence vote over selling individual plans on the public exchanges for 2018." (Reed Abelson, "Humana Plans To Pull Out Of Obamacare's Insurance Exchanges," The New York Times , 2/14/17)

  • The Exit Of Humana Means That The Knoxville Area Will Be Vulnerable Because "…There Will Be No Obamacare Exchange In That Area." "Humana is currently the only insurer on the exchange in the greater Knoxville area - meaning if another insurance company does not enter the market, there will be no Obamacare exchange in that area. The insurance giant announced the decision on Feb. 14 during an analyst call after its $34 billion deal with Aetna was terminated following a ruling by a federal judge." (Holly Fletcher, "Humana Exit Shakes Up 2018 ACA Exchange, Leaves Knoxville Coverage Gap," The Tennessean , 2/15/17)

This Week Iowa Was Hit Hard By The Failures Of Obamacare With The Announcement That A Third Insurance Provider Removed Themselves From The Marketplace

This Week Medica Released A Statement Stating That They Would Be "…Examining The Potential Of Limited Offerings" In The Iowa ACA Marketplace.  "Medica, a Minnesota based health insurer, released a statement suggesting it was close to following two larger carriers in deciding not to sell such policies in Iowa for 2018, due to instability in the market. 'Without swift action by the state or Congress to provide stability to Iowa's individual insurance market, Medica will not be able to serve the citizens of Iowa in the manner and breadth that we do today. We are examining the potential of limited offerings, but our ability to stay in the Iowa insurance market in any capacity is in question at this point,' the company's statement said." (Tony Leys, "Medica, The Last Insurer Selling Individual Health Policies In Most Of Iowa, Likely To Exit," The Des Moise Register , 5/3/17)

  • The News Came As A Shock To The People Of Iowa Because Aetna And Wellmark Blue Cross & Blue Shield Announced That They Would Be Pulling Out Of Iowa's Individual Health Insurance Market. "Medica's move comes on the heels of announcements last month that Aetna and Wellmark Blue Cross & Blue Shield are pulling out of Iowa's individual health insurance market. Those are the only three choices for individual health insurance in most areas of the state this year." (Tony Leys, "Medica, The Last Insurer Selling Individual Health Policies In Most Of Iowa, Likely To Exit," The Des Moise Register , 5/3/17)

Aetna Stated This Week They Will Also Be Pulling Out Of "Iowa's ACA Marketplace In 2018." "Mr. Guertin said during a call with analysts that Aetna, which also offers individual plans outside the exchanges in some states, was looking toward 'significantly reducing our exposure' to the individual business next year. In an interview, he said, 'obviously the results drive the decision to reduce our exposure and manage this risk.' Aetna has said it would pull out of Iowa's ACA marketplace in 2018, and its remaining states are Delaware, Nebraska and Virginia." (Anna Wilde Mathews and Imani Moise, "Aetna To Pull Back Further From Health Exchanges," Wall Street Journal , 5/2/17)

Aetna Is Also Exiting The Virginia Marketplace

Aetna Continues Its Healthcare Exit Strategy By Announcing That It Will "…Not Sell Obamacare Plans In Virginia Next Year…" Limiting More Options For The People Of Virginia.  "Giant insurer Aetna said Wednesday it will not sell Obamacare plans in Virginia next year, citing expected financial losses on such plans in 2017. Aetna left open the question of whether it will sell such individual health plans anywhere in the United States. Aetna's decision to exit Virginia in 2018 comes several weeks after it said it would drop out of Iowa's individual market next year." (Dan Mangan, "Aetna Will Exit Obamacare Markets In Virginia In 2018, Citing Expected Losses On Individual Plans This Year," CNBC , 5/3/17)

These Insurance Provider Departures Have Left Many Questioning The Stability Of The Marketplace And Whether They Will Continue To Be Covered

Humana Executives Cite The "Unbalanced Risk Pool" As A Major Reason As To Why They Would Leave The Market In 2018, A Fear That Many Other Providers Also Hold.  "But an initial analysis of its 2017 consumer base found that it remained riskier than Humana could tolerate. So the company is exiting all 11 states where it sells individual policies, both on the Obamacare exchange and outside of it. 'We are again seeing signs of an unbalanced risk pool based on the results of the 2017 open enrollment period, therefore we've decided that we can't continue to offer this coverage in 2018,' said Bruce Broussard, Humana's chief executive, in a conference call with investors." (Tami Luhby, "Human Pulls Out Of Obamacare For 2018," CNN , 2/14/17)

Analysts Now Question Insurance Providers Like Anthem On Their Ability To Stay In The Market, An Exit From This Company Would Leave "…Millions Of Obamacare Customers And Potential Customers Would Be Left In 2018 With Even Fewer Choices Of Insurers Than They Have Now." "A new analyst report says there is reason to believe that major Obamacare insurer Anthem "is leaning toward exiting a high percentage" of the insurance regions where it currently sells individual health plans. If that happens, millions of Obamacare customers and potential customers would be left in 2018 with even fewer choices of insurers than they have now." (Dan Mangan, "Big Obamacare Insurer Anthem Seen 'Leaning Toward Exiting' Many Areas Where It Now Sells Plans," CNBC , 3/30/17)


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