ObamaFail™

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HMS BarryO

HealthyCT Care goes under.

Connecticut’s financially “unstable” Obamacare health-insurance co-op was placed under state supervision on Tuesday, as regulators said 40,000 people covered by the company will ultimately have to find new plans for the coming year.

 HealthyCT is the 14th of 23 original Obamacare co-ops to fail since they began selling health plans on government-run Affordable Care Act insurance exchanges. Several of the other remaining co-ops, at least, are believed to be on shaky financial ground.

Until last week, the nonprofit HealthyCT had “adequate capital and sustainable liquidity” — but that fell apart Thursday with a federal requirement that hit HealthyCT with a $13.4 million bill, according to the Connecticut Insurance Department.

State Insurance Commissioner Katharine Wade said that the resulting “hazardous financial standing” of HealthyCT led her to place the co-op under supervision, which prevents the company from writing any new policies, and also from renewing any large or smaller employer plans that expire after last Friday.

The co-op covers about 13,000 people on plans sold on Connecticut’s Obamacare exchange, who represent about 10 percent of all the Obamacare plans sold in the Nutmeg State. And another 27,000 people are covered by HealthyCT through large and small employer plans.

I’m not sure how an insurance company can be described as having “adequate capital and sustainable liquidity” “until last week”, when it had to know that it owed $13.4 million to the federal government’s “spread the risk” fund, but that’s a quibble: no one believes this stuff anymore, anyway.

Which is not to say there’s anything to cheer about here, because there really has to be a way to provide affordable insurance to people of modest means. My own two daughters are participants in Oregon’s and Maine’s programs, respectively, and I worry that those, too will fail (Oregon’s is definitely in trouble, not sure about Maine’s). Several doctors in the Portland area have established a fee structure that offers unlimited care at the GP level, with generic prescription drugs sold at cost – usually $3, for $50 a month. Great idea, great doctors, but for the plan to really work, patients should also purchase a catastrophic illness policy with, say, a $5,000 deductible, just in case.

ObamaCare prohibits those policies.

13 Comments

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13 responses to “ObamaFail™

  1. Cos Cobber

    Its all designed to fail – as you have stated before.

    And the failure rate is probably happening faster than anticipated as we still have a situation where many young healthy people are not buying insurance and so…

  2. Mustang Callie

    I have private insurance which was great until the “Affordable Health Care Act” came along. I paid $500 or $600 a month and had perfect care. Now I am so screwed. I did not get to keep my doctors..they went “concierge” and Anthem sent me a letter saying my rate was going up 28%. What kind of industry raises their prices that high and gets away with it?

    • Anonymous

      The private health insurance industry? Free market at its best!

      • harrycan

        Since when is this “Free Market”? This is all orchestrated by our rulers in each state house and the federal government.

  3. Anonymous

    I switched to HealthyCT when I was forced to give up my great health insurance plan and Anthem charged an arm and a leg. Now I’ll probably have to overpay for Anthem once again and not be covered for anything with huge copays for each visit. Thanks Obama. You are succeeding in reducing visits to the doctor and having our health degrade (except for all the poor people who have everything paid for)!

  4. Anonymous

    ditto. I switched for exact reason and expecting in this monopolistic environment the worse of price increases. I wonder if there is any state that has a better rate plan……I think the Republican plan to sell cross state line is one good answer.

  5. burningmadolf

    Any independently insured got absolutely fucked by O-care. Annual increases that were once manageable absolutely skyrocketed under this shit fest.
    My only happiness will come when all the union Cadillac plans get their tax humping. Of course that will only happen sometime after January 2017 if at all.

    • harrycan

      I got news for you, the Republicans will fold like cheap cameras. The useless POS’s that they are, the democrats and the republicans will reduce the impact of Cadillac plans on Unions. You can bet your life on it. You’ve heard it . Bank on it.

  6. Maître d'Oyer et Terminer

    SCoaMFed again. What a catastrophic diddle twat the man has proven to be. Basically an incomparable moron bereft of any real skills beyond the ability of reading a Teleprompter marginally well. Now we’re faced with a choice between a hideous psychotic lying cow and a bizarre nearly incomprehensible mega narcissist who has to see his name posted on at least one building in every city he visits.

    • harrycan

      I’ll take the guy who has his name posted on a building in every city he visits. He at least built something. What accomplishments has the psychotic lying cow have to her name? 4 dead bodies (maybe more?), worlds record distance for throwing vases, having the mouth of a trucker, and getting away with violating the espionage act.

  7. “…..no one believes this stuff anymore, anyway.”

  8. harrycan

    My insurance went from $1400 per Month (Which I pay myself~for a family of 3) – to Almost $2000 per month. I had to look at the present health of my family and decide to take a risk and go down to $1500 for less (coverage, poorer plan~how ironic), which means higher personal and family deductibles, bigger co-pays and limited choices for Primary Care Doctors. For instance, My wife’s OBGYN is not in network, so each time she goes there, its not a $60 visit, but in the hundreds of dollars. I recently had a Nuclear Stress test (I guess worrying about the state of my money spent in healthcare dollars was doing a number on my heart) which I also had to pay $728.00 out of pocket. It’s like Social Security at this point, I am paying into it, but I don’t expect to ever get to use it. Being that its medical care, that should be a good thing, but the costs are killing me. A Hillary Clinton as president will really pay off as I will need both more cardiologist and mental health care. ~ Thank you Obama, Democrats and Justice Roberts (you boob).

  9. The canard is that the system is “insurance”: it is no such thing. Insurance is the basic economic idea of transferring risk for a price. Life, homeowner’s, auto, personal, catastrophic, environmental etc.. all work on the idea that a provider can accurately calculate the risk, charge an appropriate premium to cover the likelihood of the event, reduce adverse selection risk by underwriting a large enough pool to spread the risk and be able to share the risk with others through a re insurance mechanism. Does that sound like how our “healthcare insurance system” works? Not. Our system is a convoluted pre paid plan that transfers wealth for the healthy to the sick with undue regulations that encourages overuse, discourages any competitive shopping and burdens the health care system with massive amounts of overhead that has nothing to do with doctor patient care.

    To drive down the cost of healthcare and revert back to a true doctor patient relationship you need to create a system that allows the individual to pay for routine out of pocket expenses themselves (ie putting gas in the tank, getting an oil change for example) and having a true insurance policy for catastrophic events ( car accident) with a deductible tailored to each individuals risk and financial profile, combined with a robust health savings account system to compliment the 2.This approach would do several things:

    Eliminate much of the overhead in the system, including the massive billing offices with admins chasing down payments and insurance companies giant maw of paper pushers

    Allow individuals to shop for their own doctor. you don’t have to see a doctor “in your system”

    Reduce the overuse of the health care system by introducing some economics into the process of heading off to the ER with a sniffle

    Place responsibility over one’s own health back where it belongs, with the individual. If you want ti live an unhealthy lifestyle, fine. I don’t want to pay for it. Paying out of pocket for stupid behavior leads either to cessation, curtailment or an interview with Peter.

    Eliminate the Catch -22 of paying for health insurance that no one accepts. 80% of the expansion under O Care was through Medicaid. If you know that system, you know that it is almost impossible to get an appointment with anyone. ER visits have not dropped since O- Care, they have gone up, Why? Because despite providing “insurance”, the ER is the only place you can get treated. For people at the low end of the income ladder, premium support and/or a credit directly to their HSA would eliminate the BS of Medicaid and I would submit would be more controllable/track able and less costly than the current system.

    The sand in the gears is peeps with bad DNA. That should be addressed as a separate issue and if the catastrophic health insurance pool is big enough (it should be with 300mm+ peeps) the additional premium costs can be spread out so that the healthy pay a little bit more but less than they do now and those whose health care needs are high are not bankrupted. You can always create a higher/high risk pool for these peeps in order for companies to get better historical data in order to properly price the cost of the premium.

    You need in conjunction with the above to eliminate the oversight of the 50 (57 if you are O) state insurance commissioners for this system in order to eliminate the current balkanization of the health markets. I am a big deliver in federalism, but this is one area that it is detrimental.

    The other big canard is that before O care people did not have health coverage. They did. People without coverage would walk into the ER or other state/city or privately funded clinics and get seen. People were not dying ion the streets from lack of coverage. the issue was that “charity care” was being funded by the government at about 50 cents on the dollar and it was straining both the health providers ( Think urban hosps closing doors or ER’s) and the states that made the reimbursement for this care. Much of these costs have now been shifted directly to individuals through the ridiculously high premiums that seem to obny go up double digits each year.

    Apologize for the long post. I think this is one area where there is so little honest debate and most people despite their protestations are clueless.