The state-run insurance marketplaces created under the Affordable Care Act may not be sustainable, a GOP report released Tuesday by a House committee concludes.
The Energy and Commerce Committee report concludes that the $5 billion the federal government committed to building state-based exchanges has resulted in a failed experiment, and says that none of the exchanges are currently financially self-sustaining. The report comes ahead of a hearing Wednesday on the Affordable Care Act called by the committee’s health and oversight subcommittees.
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The House Ways and Means Committee on Thursday approved a GOP bill that responds to the failure of about two-thirds of the co-op insurers created under the Affordable Care Act.
The bill, which passed by a voice vote, would exempt people who lost insurance because the co-op through which they bought coverage folded mid-year from the Affordable Care Act’s individual mandate.
Roughly 750,000 families have had their coverage disrupted by the closure of 16 of the 23 co-ops created under the 2010 health care law, all citing financial problems, Committee Chairman Kevin Brady (R-Texas) said during the hearing. The bill would exempt consumers from the individual mandate for the remainder of that year, and they would be required to sign up for coverage during the next enrollment period.
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The Health Republican Insurance of New Jersey announced Monday plans to shut down, hours after Sen. Ben Sasse introduced the CO-OP Consumer Protection Act.
The Garden State’s Obamacare co-op plans to close at the end of the year, making it the 17th of 23 to fail and cost Americans their health plans.
“Families in New Jersey have just been gut-punched and the last thing that Washington should do is force these CO-OP victims to pay Obamacare’s individual mandate. This started in Nebraska and Iowa and has been a catastrophe for countless Americans,” Sasse said in a press release.
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The best measurement of people who lack health insurance, the National Health Interview Survey published by the Centers for Disease Control and Prevention (CDC), has released early estimates of health insurance for all fifty states and the District of Columbia in the first quarter of 2016. There are three things to note.
First: 70.2 percent of residents, age 18 to through 64, had “private health insurance” (at the time of the interview) in the first quarter of this year, which is which is the same rate as persisted until 2006. Obamacare has not achieved a breakthrough in coverage. It has just restored us to where we were a decade ago. Further, the contribution of Obamacare’s exchanges to this is almost trivial, covering only four million people.
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Progress in reducing the number of people without health insurance in the U.S. appears to be losing momentum this year even as rising premiums and dwindling choice are reviving the political blame game over President Barack Obama’s health care law.
The future of the Affordable Care Act hinges on the outcome of the presidential election, and it’s shaping up as a moment of truth for Republicans.
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Enrollment in the insurance exchanges for President Obama’s signature health-care law is at less than half the initial forecast, pushing several major insurance companies to stop offering health plans in certain markets because of significant financial losses.
As a result, the administration’s promise of a menu of health-plan choices has been replaced by a grim, though preliminary, forecast: Next year, more than 1 in 4 counties are at risk of having a single insurer on its exchange, said Cynthia Cox, who studies health reform for the Kaiser Family Foundation.
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So much for choice. In many parts of the country, Obamacare customers will be down to one insurer when they go to sign up for coverage next year on the public exchanges.
A central tenet of the federal health law was to offer a range of affordable health plans through competition among private insurers. But a wave of insurer failures and the recent decision by several of the largest companies, including Aetna, to exit markets are leaving large portions of the country with functional monopolies for next year.
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An Arizona county is poised to become an Obamacare ghost town because no insurer wants to sell exchange plans there.
Aetna’s recent announcement that it would exit most of the states where it offers Obamacare plans leaves residents of Pinal County, Arizona, without any options to get subsidized health coverage next year, unless regulators scramble to find a carrier to fill the void between now and early October.
About 9,700 people in Pinal signed up for Obamacare plans this year, according to administration data.
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Aetna’s retreat from most ObamaCare marketplaces this week is rippling across rural America, starting with Pinal County in Arizona.
State regulators still have until Aug. 23 to try to lure other companies into the marketplace, but it could be a tough sell after one of the nation’s largest insurers decided to pull back because of costs.
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Last November, when UnitedHealth Group said it expected to post big losses on its Obamacare policies in 2016, rivals such as Anthem and Aetna signaled their Affordable Care Act businesses were doing fine. The Obama administration used that as evidence to refute claims that systemic problems were brewing in its landmark insurance program.
Now, there’s no denying it. The four biggest U.S. health insurers admit they’re each losing hundreds of millions of dollars on their Obamacare plans. Rather than expand coverage, many are pulling out of the exchanges that were set up by the ACA so people can shop for insurance plans, often with the help of government subsidies.
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