Back in November 2015, United Heath Care announced it suffered half billion dollars in losses selling government designed health insurance on the Obamacare exchanges and threatened to pull out. Now, after losing $100 million last year on 750,000 Obamacare dependents, Aetna CEO Mark Bertolini warned: “we continue to have serious concerns about the sustainability of the public exchanges.”
Investors Business Daily explains the problems:
Turns out that not only is ObamaCare failing to attract enough young and healthy, it has also encouraged others to game the system by waiting until they get sick to sign up for coverage, outside the three-month open enrollment window.
Aetna and UnitedHealth say that these people use more health care than those who sign during open enrollment and in many cases drop coverage once their medical bills get paid.
This, by the way, is precisely what ObamaCare critics predicted would happen. Guaranteeing insurance coverage to everyone, no matter how sick, and charging those with preexisting illnesses artificially low rates, provides an enormous incentive to cheat. States that had tried these reforms ended up creating premium “death spirals” and wrecking their individual markets.
Told you so. Now what are we going to do about it?