Friday, August 19, 2016

This is How the Obamacare Story Will End

This is How the Obamacare Story Will End | Foundation for Economic Education
"The ACA was supposed to guarantee that every American could afford health insurance.
Not only has it failed to do so, but a more spectacular failure is imminent.
It’s about to get a whole lot harder to be sick and poor in America.
Health insurance company Aetna is pulling out of Obamacare in most states.
After announcing a $300 million loss, the company joins UnitedHealth Group Inc. and Humana Inc. which also lost hundreds of millions of dollars by participating in Obamacare exchanges. Anthem and Cigna have also complained about losses from participation.
Why are they leaving?
The ACA only helps the very poor and very sick.
To make insurance affordable for those people, the ACA subsidizes their insurance premiums.
Very sick people cost a lot more to insure but don’t bring in any more revenue because Obamacare outlaws that.
To do this, the poor and sick buy their insurance on state-run exchanges.
Obamacare made state governments act as insurance brokers.
Image result for oamacare failIt also forced every American to become a customer of a health insurance company, though they could choose which one.
In exchange for this tremendous handout from the federal government, insurance companies agreed to sell Obamacare through the state governments.
Obamacare’s subsidies made very generous insurance affordable for poor, sick Americans.
The subsidies meant that millions of Americans were insured for the first time in decades.
But the ACA didn’t make insuring poor, sick Americans profitable for insurance companies.
The ACA doesn’t force companies to sell insurance to poor, sick Americans.
So you have to buy it, but the companies don’t have to sell it to you.
The vast majority of the people who are buying insurance from Aetna, UnitedHealth Group Inc., and Humana Inc. on the exchanges are very sick.
Very sick people cost a lot more to insure but don’t bring in any more revenue because Obamacare outlaws that.
That leaves Aetna with two choices.
It cannot continue to insure these people until they bleed the company dry and then declare bankruptcy even if they wanted to because they’re obligated to shareholders. 
Their only options are to raise premiums significantly or dump most of their 850,000 exchange customers.
What’s next?...
Read on!!!

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