Thursday, November 5, 2015

ObamaCare Insurance Risk Corridor Nearly Depleted, S&P Warns

Obamacare is a failure many times over no matter how the administration and the propaganda machine spins it.  Increased costs, increased emergency room visits, lower enrollment rates than predicted and bankrupt healthcare 'coops' are just a few of the failings of  Barack Obama's signature healthcare law.  Executive action delaying the rest of the roll-out until next year and later will not stop the inevitable failure of Obamacare.  As The Hill reports, Obamacare was sold using many BIG lies as a few more come to light.
A key ObamaCare program intended to cushion health insurers from high costs is facing a massive cash shortage going into 2016, Standard and Poor’s said Thursday. 
Under the so-called “risk corridor” program, the Obama administration charges insurers with more-than-expected profits and redistributes the money to plans with losses.

In the first two years of the healthcare law, more insurers than expected have ended up with balance sheets in the red. As a result, the risk pool now has only about $1 to cover every $10 in claims – an equation that is not likely to improve until the market stabilizes. 
“We estimate that that the 2015 ACA risk corridor will be significantly underfunded, as was the case the previous year,” Standard and Poor’s analyst Deep Banerjee predicted in a report Thursday. 
Banerjee said external funding would likely be needed to add to the funds in 2016, a move that would likely have to be made by Congress. 
Federal health officials had expected a rough few years after new rules that said insurers couldn’t reject customers with pre-existing conditions – adding more risk to the marketplace. 
But the risk pool has been depleted faster than expected as insurers intentionally lowered costs in the early days of the ObamaCare maketable with hopes of reeling in new customers. 
The situation could improve this year, with more insurers raising their premiums, Banerjee said.
The risk pool was designed for insurance companies to offer artificially low premiums to entice customers to their plans and enabled the Democrats to say these rates are proof Obamcare was a good deal. Of course now the premiums are rising many times faster than inflation so what is left? Skyrocketing premiums and more deficit spending by bailing out Obamacare with tax money as the article concludes. Where will the Democrats find the funds for their fiasco? ( Incidentally, Barack Obama is the president that asked for and signed 'pay as you go' ).
“In our view, it looks like appropriations may be the only way to fully fund the risk corridor deficits,” the analysis warned.\
 Obamacare was designed to fail and was based on LIES.. It was always a Trojan Horse for a single payer government controlled healthcare system The Democratic party's zero information voter base was expertly exploited by Obama's apparatchiks and they relied heavily on the stupidity of the Democratic voter and their representatives to get Obamacare passed, just as they will when they push for single payer 'medicare for all' .

BTW, single payer is a failure, just ask Vermont....

Other blogs on Obamacare

MN Individual Healthcare Premiums Increase Up to 49%

Overhead costs exploding under ObamaCare

Jonathan Gruber Had Larger Role in ObamaCare Than Previously Known

Nation’s 'Elite' Cancer Hospitals Off-Limits Under Obamacare