Wednesday, May 27, 2015

Overhead costs exploding under ObamaCare

The Obamacare law was passed without transparency, was based on lies and relied on the stupidity of the Democrat voter. The failure of Obama's 'signature' legislation is evident reading many different news items. 

Five years after the passage of ObamaCare, there is one expense that’s still causing sticker shock across the healthcare industry: overhead costs. 
The administrative costs for healthcare plans are expected to explode by more than a quarter of a trillion dollars over the next decade, according to a new study published by the Health Affairs blog.   
The $270 billion in new costs, for both private insurance companies and government programs, will be “over and above what would have been expected had the law not been enacted,” one of the authors, David Himmelstein, wrote Wednesday. 
Those costs will be particularly high this year, when overhead is expected to make up 45 percent of all federal spending related to the Affordable Care Act. By 2022, that ratio will decrease to about 20 percent of federal spending related to the law. 
The study is based on data from both the government’s National Health Expenditure Projections and the Congressional Budget Office. Both authors are members of Physicians for a National Health Program, which advocates for a single-payer system. 
"This number – 22.5 percent of all new spending going into overheard – is shocking even to me, to be honest. It’s almost one out of every four dollars is just going to bureaucracy," the study's other author, Steffie Woolhandler, said Wednesday...
A breakdown of the costs...... 
The extra administrative costs amount to the equivalent of $1,375 per newly insured person per year, the authors write.
About two-thirds of the new overhead costs are the result of rising enrollment in private plans, which the authors say carries “high costs for administration and profits.” 
The rest is the result of expanded government programs, such as Medicaid. It also includes the cost of running ObamaCare exchanges at both the federal and state levels. 
The federal exchange, as well as the 13 state-run exchanges, have all been boosted by grant money, though those funds will run out by 2016. The exchange will then need to rely on fees to plan premiums.
Next from the Wall Street Journal: 

Health Insurers Seek Hefty Rate Boosts
Proposals set the stage for debate over federal health law’s impact
Major insurers in some states are proposing hefty rate boosts for plans sold under the federal health law, setting the stage for an intense debate this summer over the law’s impact. 
In New Mexico, market leader Health Care Service Corp. is asking for an average jump of 51.6% in premiums for 2016. The biggest insurer in Tennessee, BlueCross BlueShield of Tennessee, has requested an average 36.3% increase. In Maryland, market leader CareFirst BlueCross BlueShield wants to raise rates 30.4% across its products. Moda Health, the largest insurer on the Oregon health exchange, seeks an average boost of around 25%. 
All of them cite high medical costs incurred by people newly enrolled under the Affordable Care Act.....
Next from CNBC

Obamacare's special enrollments draw little interest
Many were called. Few chose to respond.
The federal Obamacare insurance marketplace signed up 147,000 people in 36 states during a special tax season enrollment period, officials revealed Tuesday. That relatively light level of sign-ups was similar to what was seen in 11 other states and the District of Columbia during their own grace periods. issued the final tally via Twitter rather than a press release or news call that Obama administration officials have previously used to announce other numbers and results.
The federal exchange's special enrollment period was open to people who learned they were subject to a tax penalty for failing to have health insurance coverage last year when they were preparing their tax returns. 
In all, it appears fewer than 250,000 people signed up nationally. In Hawaii, no people—as in zero—signed up during the special tax season enrollment...
Lastly, from The LaTimes

Amid slower growth, California's Obamacare exchange cuts proposed spending

After using most of $1 billion in federal start-up money, California's Obamacare exchange is preparing to go on a diet.
That financial reality is reflected in Covered California's proposed budget, released Wednesday, as well as a reduced forecast calling for 2016 enrollment of fewer than 1.5 million people.
The recalibration comes after tepid enrollment growth for California during the second year of the Affordable Care Act. The state ended open enrollment in February with 1.4 million people signed up, far short of its goal of 1.7 million.
A number of factors contributed to the shortfall, but health policy experts said that some uninsured folks still find health insurance unaffordable despite the health law's premium subsidies....

Obamacare is not sustainable by any measure and has failed the American people, just like Barack Obama.