Five Thirty-Eight offers a way for Insures to be FLEXIBLE and make the law work for American’s….
The Media focus has been on the BIG Insures , who want to the GOVERNMENT to adjust…NOT THEM….
Congress and the insurers SHOULD be working TOGETHER….
But of course it’s Obamacare, Right?
Can’t help President Obama adjust things for the sake of the American uninsured public , Right?
Politics come FIRST….
The stakes are high now, and they will get much higher if the problem festers. Since Aetna, United and Humana serve at least 2 million people who buy individual coverage through Obamacare, those companies’ shrinking role in the ACA marketplace means lots of people need new 2017 coverage. More fundamentally, if insurers can’t make money, that could undercut Obamacare’s goal of using America’s existing private insurance system to achieve near-universal coverage. Even executives who have been critical of the details of the law don’t want to see it fail.
“People seeking care through these exchange products need this care,” Aetna CEO Mark Bertolini said in an earnings call with analysts. “These aren’t people running off to get services that they don’t need.”
Fixing Obamacare’s exchanges will take three main steps: First, companies need to adjust their strategies to the real economics of Obamacare, which are just now becoming clear. Second, regulators need to make changes to accommodate insurers that are facing sicker patients than expected and, especially, a wave of extremely expensive drugs concentrated in the treatment of hepatitis C. Finally, Congress needs to make fixes, the most important being subsidizing more of the premiums paid by middle-class customers — the kind of midcourse adjustment that Congress routinely makes for Medicare but which has been politically impossible for Obamacare.
First, insurers have to get their own act together and control costs where they can.
It’s a manageable problem: Obamacare losses aren’t that big, considering that health care is a $3 trillion-plus business. Aetna, UnitedHealthcare and Humana collectively earned $5.5 billion in the first half of 2016 on $150 billion in revenue. According to Credit Suisse, the three companies’ total Obamacare losses won’t top $2 billion this year.
Insurers aren’t all struggling equally. Some, such as Molina Healthcare and Centene, are actually making money on the exchanges…..
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