Thursday, April 28, 2016

Obamacare bankrupting health insurers, too: Largest insurer loses $1 billion a year, says it's going to drop coverage to save itself from bankruptcy


Obamacare
(NaturalNews) Americans who are suffering rate increases and higher out-of-pocket expenses thanks to the healthcare "reforms" of the "Affordable" Care Act, are about to get hit with even higher costs, after the nation's largest health insurer announced recently that it was pulling out of the Obamacare exchanges after losing a whopping $1 billion since 2014.

As reported by The Associated Press – which tried to spin the departure in a good light for consumers (more on that in a moment) – UnitedHealth said that its losses had caused it to limit participation in the exchanges to just a handful of states next year, after expanding to 34 in 2016, though officials with the company would not be more specific about 2017 plans.

Through the end of March, UnitedHealth covered 795,000 people, or about 6 percent of the 12.7 million people who had signed up for coverage through the public exchanges by 2016. UnitedHealth's decision came after nonprofit health cooperatives that were created by Obamacare also reported deep losses last year, while other major insurers like Aetna have begun to question the long-term viability of the exchanges – a key element in Affordable Care Act's drive to expand exchanges even further (and, therefore, double down on their failure.

The AP said that industry watchers believe other health insurers will – in the AP's vernacular - "adjust their exchange participation" in the coming months, which is a roundabout way of saying more companies are likely to bail in the future.