This is not exactly the best business model one could create — the businesses can’t sell the product at a profit and the customer can’t afford to buy it.
But when the facts hit your eyes like a big pizza pie, that’s ObamaCare.
The Wall Street Journal reports that UnitedHealth Group’s $425 million downgrade in forecasted earnings for 2015 was almost entirely due to losses on the ObamaCare exchanges. As a result the company is threatening to stop selling on the exchanges in 2017. It has already suspended advertising the product and stopped paying commissions for new policies. “It literally doesn’t want consumers to buy its products,” WSJ observed.
The company said the payouts for ObamaCare coverage are exceeding premium income and there is no turnaround in sight. This doubtlessly happening with other insurers as well.
Meanwhile, The New York Times is reporting that many people are deciding to forego health insurance because of the high deductibles under ObamaCare. In order to keep premiums low, insurers are charging outlandish deductibles before coverage kicks in.
The Times found one family of four that paid premiums of $1,200 a month with an annual deductible of $12,700. That means they would have to pay out of pocket $27,100 before seeing a dime of coverage.
The newspaper said people are dropping coverage and risking paying the penalty under ObamaCare. It is cheaper.
Aren’t there truth in labeling laws? Affordable Care Act indeed.
Forbes points out how few are really signing up for ObamaCare.
While the Congressional Budget Office had projected that 14 million enroll this year, it looks like the number will be about 9.5 million. Of those, only 2 million will be getting refundable tax credit subsidies. “That means that Obamacare is quickly turning into a Medicaid expansion,” the article explains. The single payer is the taxpayer.
Meanwhile, the co-ops set up under ObamaCare with taxpayer loans to provide competition and keep prices lower are going broke, including Nevada’s.
David Catron at The American Thinker offered this summation: “If you increase the cost of doing business for insurers, they’ll raise premiums and deductibles. If you make it impossible for them to make a profit selling coverage through exchanges, they’ll pull out. If you make coverage too expensive, people won’t buy it. If that coverage pays doctors less than it costs to treat a patient, doctors won’t treat them. If you pass a law that ignores such realities, it will be subjected to fact after brutal fact until it finally dies.”