No wonder we had to pass the Affordable Care Act in order to find out what was in it. They knew that it would be a total disaster from the get-go.
What they were hoping for was that young, healthy people would be signing up on the Obamacare exchanges in droves. That way, insurers would get way more customers – by law – and they could increase their profits. Having a bunch of young and healthy people as customers would mean that the insurance companies would be getting lots of premium payments but not having to pay out much money in claims, since these customers were young and healthy.
But what happened was that young, healthy people didn’t fall for the Obamacare marketing gimmicks that were targeting millennials, and they didn’t bother signing up. But lots of people did sign up. Just not young and healthy people. Older and sicker people signed up, many of whom had pre-existing conditions. Those are the very people insurance companies do not want. All that did was ensure that the insurance companies would be shelling out tons of money in claims and not making much in return. They were losing billions of dollars.
While part of the marketing campaign surrounding Obamacare was that they wanted to make sure every American was insured, and it was all about how they cared for the elderly and sick, regardless of pre-existing conditions, that wasn’t the case. It was a boondoggle. And when it became apparent that insurers weren’t making the money the government promised, it wasn’t worth it to them.
Now, many insurers are ducking out of Obamacare altogether, and the whole system is ready to collapse on itself. From Bloomberg:
A growing number of people in Obamacare are finding out their health insurance plans will disappear from the program next year, forcing them to find new coverage even as options shrink and prices rise.
At least 1.4 million people in 32 states will lose the Obamacare plan they have now, according to state officials contacted by Bloomberg. That’s largely caused by Aetna Inc., UnitedHealth Group Inc. and some state or regional insurers quitting the law’s markets for individual coverage.
Sign-ups for Obamacare coverage begin next month. Fallout from the quitting insurers has emerged as the latest threat to the law, which is also a major focal point in the U.S. presidential election. While it’s not clear what all the consequences of the departing insurers will be, interviews with regulators and insurance customers suggest that plans will be fewer and more expensive, and may not include the same doctors and hospitals.