UnitedHealth Group pulling out of Obamacare exchanges?, Expects major losses on its business through Affordable Care Act, Other insurers sounding alarms about their exchange business, Many insurers have raised premiums to cover medical costs of enrollees

UnitedHealth Group pulling out of Obamacare exchanges?, Expects major losses on its business through Affordable Care Act, Other insurers sounding alarms about their exchange business, Many insurers have raised premiums to cover medical costs of enrollees

“If you’ve got health insurance we’re going to work with you to lower your premiums by $2,500 per family per year. We will not wait 20 years from now to do it, or 10 years from now to do it. We will do it by the end of my first term as president.”…Barack Obama

“Dean Griffin liked the health insurance he purchased for himself and his wife three years ago and thought he’d be able to keep the plan even after the federal Affordable Care Act took effect.

But the 64-year-old recently received a letter notifying him the plan was being cancelled because it didn’t cover certain benefits required under the law.

The Griffins, who live near Philadelphia, pay $770 monthly for their soon-to-be-terminated health care plan with a $2,500 deductible. The cheapest plan they found on their state insurance exchange was a so-called bronze plan charging a $1,275 monthly premium with deductibles totalling $12,700. It covers only providers in Pennsylvania, so the couple, who live near Delaware, won’t be able to see doctors they’ve used for more than a decade.”…Times Colonist November 2, 2013

“We are being lied to on a scale unimaginable by George Orwell.”…Citizen Wells

 

 

 

From Market Watch November 19, 2015.

“UnitedHealth Group Inc. said it expects major losses on its business through the Affordable Care Act’s exchanges and will consider withdrawing from them, in the most prominent signal so far of health insurers’ struggles with the health law’s marketplaces.

The disclosure by the biggest U.S. health insurer, which had just last month sounded optimistic notes about the segment’s prospects, will sharply boost worries about the sustainability of the law’s signature marketplaces, amid signs that many insurers’ losses on the business continue to mount.

UnitedHealth Group’s chief executive, Stephen J. Hemsley, said it made the move, which included a downgrade of its earnings projections for 2015, amid reduced growth expectations, the expected shutdowns of the majority of the health law’s nonprofit cooperative insurers, and signs that its own enrollees continue to increase their use of medical services, raising costs.
As a result, UnitedHealth said it is pulling back on marketing its exchange products, as open enrollment is currently under way for plans that will take effect in 2016. And the insurer said it is “evaluating the viability of the insurance exchange product segment and will determine during the first half of 2016 to what extent it can continue to serve the public exchange markets in 2017.” UnitedHealth had previously expanded its exchange offerings to 11 new states for 2016, and said in October it had around 550,000 people enrolled.

UnitedHealth said it was revising its 2015 earnings projection to $6 a share, from a previous range of $6.25 to $6.35. The move reflected “pressure” of $425 million, or 26 cents a share, tied to individual plans sold under the health law, it said. The $425 million includes $275 million related to the “advance recognition” of losses it expects to incur in 2016. UnitedHealth also said it expects its 2016 earnings to be between $7.10 and $7.30 per share in 2016; previously, the company said it thought next year’s earnings would be within the range of analysts’ projections, then around $7.09 to $7.55.

Chris Rigg, an analyst with Susquehanna Financial Group, wrote that it was likely “this is more of an industry issue,” and if the exchanges don’t stabilize, he would expect UnitedHealth to “exit this business line.”

UnitedHealth’s announcement comes as other insurers have been sounding alarms about their exchange business, but the big insurer went considerably farther than its peers in flagging the recent rapid deterioration of its performance and raising concerns about future viability. UnitedHealth also changed its own tone markedly from its Oct. 15 earnings call, when it said it expected “strikingly better” results on the exchanges in 2016, due partly to price increases that it said averaged in the double digits.

The impact of the insurance industry’s struggles is already clear in the products currently on offer in the marketplaces, many of which are aimed at stanching a flood of red ink. For these plans, which will take effect in 2016, many insurers have raised premiums in order to cover the medical costs of enrollees, which have run higher than many companies originally projected, fueling this year’s losses. Insurers have also shifted to offering more limited choices of health-care providers. The majority of the startup cooperative insurers created under the health law are slated to shut down.

Analysts say the danger is that higher rates might discourage enrollment, particularly by the younger, healthier consumers that the marketplaces need to draw in, since they are the ones that are most likely to feel they can go without insurance. That would have the effect of driving premiums even higher in the future, because insurers would need more rate increases to cover the costs of a smaller, sicker pool of enrollees. At its worst, this cycle can feed on itself, creating what the industry calls a “death spiral.””

Read more:

http://www.marketwatch.com/story/unitedhealth-cuts-guidance-citing-obamacare-2015-11-19

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18 responses to “UnitedHealth Group pulling out of Obamacare exchanges?, Expects major losses on its business through Affordable Care Act, Other insurers sounding alarms about their exchange business, Many insurers have raised premiums to cover medical costs of enrollees

  1. “Blue Cross and Blue Shield of New Mexico has requested rate increases averaging 51 percent for its 33,000 members. The proposal elicited tart online comments from consumers.”

    ““Our enrollees generated 24 percent more claims than we thought they would when we set our 2014 rates,” said Nathan T. Johns, the chief financial officer of Arches Health Plan, which covers about one-fourth of the people who bought insurance through the federal exchange in Utah. As a result, the company said, it collected premiums of $39.7 million and had claims of $56.3 million in 2014. It has requested rate increases averaging 45 percent for 2016.”…NY Times July 3, 2015

  2. Liberty and Islam cannot coexist.

    Free Speech and Islam cannot coexist.

    Women’s Rights and Islam cannot coexist.

    Human Rights and Islam cannot coexist.

    Critical Thinking and Islam cannot coexist.

    Weapons of Mass Destruction and Islam cannot coexist.

    and…a future ‘free world’ and Islam cannot coexist.

    So as a world, if we do not understand this by now, we are nothing but fools and idiots.

  3. For any of the young people who are considering voting for Hillary Clinton…..you need to read this post….I did not assemble this information, but it is factual, as far as I can determine……I just copied and pasted…but it’s a great read/

    For the younger voters…. here is a bit of Hillary I am betting you wont remember… YOU ALL HAVE PERMISSION TO COPY AND SHARE THIS ABOUT THIS LYING PIECE OF GARBAGE now running for president.

    Many people who may vote in the democratic primary election and the general election in 2016 have no real knowledge of Mrs. Clinton, or her accomplishments. As a public service, I thought I would provide some input regarding her triumphs for consideration.

    When Bill Clinton was president, he allowed Hillary to assume authority over a health care reform. Even after threats and intimidation, she couldn’t even get a vote in a democratic controlled congress. This fiasco cost the American taxpayers about $13 million in cost for studies, promotion, and other efforts.

    Then President Clinton gave Hillary authority over selecting a female Attorney General. Her first two selections were Zoe Baird and Kimba Wood – both were forced to withdraw their names from consideration. Next she chose Janet Reno – husband Bill described her selection as “my worst mistake.” Some may not remember that Reno made the decision to gas and destroy David Koresh and the Branch Davidian religious sect in Waco, Texas resulting in many dozens of deaths of women and children.

    Husband Bill allowed Hillary to make recommendations for the head of the Civil Rights Commission, Lani Guanier was her selection. When a little probing led to the discovered of Ms. Guanier’s radical views, her name had to be withdrawn from consideration.

    Apparently a slow learner, husband Bill allowed Hillary to make some more recommendations. She chose former law partner, Web Hubbel, for the Justice Department, Vince Foster for the White House staff, and William Kennedy for the Treasury Department. Her selections went as planned: Hubbel went to prison, Foster (presumably or did he?) committed suicide, and Kennedy was forced to resign.

    Many younger voters will have no knowledge of “Travelgate.” Hillary wanted to award unfettered travel contracts to Clinton friend, Harry Thompson – and the White House Travel Office refused to comply. She managed to have them reported to the FBI and then fired them. This ruined their reputations, cost them their jobs, and caused a thirty-six month investigation. Only one employee, Billy Dale was charged with a crime, and that of the enormous crime of mixing personal and White House funds.

    A jury acquitted him of any crime in less than two hours.

    Still not convinced of her ineptness?… Here’s some more, Hillary was allowed to recommend a close Clinton friend, Craig Livingstone, for the position of Director of White House security. When Livingstone was investigated for the improper access of about 900 FBI files of Clinton enemies (Filegate) and the widespread use of drugs by White House staff, suddenly Hillary and the president denied even knowing Mr. Livingstone, and of course, denied knowledge of drug use in the White House.

    Following this debacle, the FBI closed its White House Liaison Office after more than thirty years of service to seven presidents.

    Next, when women started coming forward with allegations of sexual harassment and rape by Bill Clinton, Hillary was put in charge of the “Bimbo Eruption” and scandal defense. Some of her more notable decisions in the debacle were:

    · She urged her husband not to settle the Paula Jones lawsuit. After the Starr investigation… they settled with Ms. Jones.
    · She refused to release the Whitewater documents, which led to the appointment of Ken Starr as Special Prosecutor. After $80 million dollars of taxpayer money was spent, Starr’s investigation led to Monica Lewinsky, which led to Bill lying about and later admitting his affairs.
    · Hillary’s devious game plan resulted in Bill losing his license to practice law for lying under oath to a grand jury and then his subsequent impeachment by the House of Representatives.

    · Hillary avoided indictment for perjury and obstruction of justice during the Starr investigation by repeating, like a broken record, “I do not recall,” “I have no recollection,” and “I don’t know” a total of 56 times while under oath.
    · After leaving the White House, Hillary was forced to return an estimated $200,000 in White House furniture, china, and artwork that she had stolen from the White House.

    Now we are exposed to: the destruction of possibly incriminating emails while Hillary was Secretary of State and the “pay to play” schemes of the Clinton Foundation – we have no idea what shoe will fall next.

    But to her loyal fans and idiots who support her –
    “what difference does it make?”
    ———————————————————————————————–
    I just thought everyone would like a little background history on the democrat front-runner…..vote for anyone, but Hillary !

  4. oldsoldier79………
    ………..it has long been clear that you can talk to MORONOBOTS until hell freezes over, and they will not hear a word you say because they are unable to process anything anyone has to say. They have a ONE TRACK mentality which cannot be reprogrammed. In actuality they are mentally ill.

  5. Obama’s Big Secrecy, Big Corruption, and Big Government.

    The Corruption Chronicles comprehensively highlights how the Obama administration, which promised to be the most transparent administration in history, became the most secretive in a generation, and it exposes the inside facts that the Obama administration has desperately fought—sometimes in court—to keep from the American people.

    NEED TO READ: “The Corruption Chronicles: Obama’s Big Secrecy, Big Corruption, and Big Government”

    Judicial Watch President Tom Fitton exposes Obama administration secrecy, secrets, and corruption by providing behind-the-scenes details of what…
    amazon.com

    http://www.amazon.com/Corruption-Chronicles-Obamas-Secrecy-Government/dp/147676705X/ref=tmm_pap_swatch_0?_encoding=UTF8&qid&sr

  6. AND NOW………
    …………the HEADCHEESE of the terrorist cell in Paris has GIVEN HIMSELF A BLOW JOB. His body parts were scattered over a wide area, inside the apartment, and at least one part of his anatomy fell from the apartment, and struck a police car below.

  7. AND NOW……..
    ………AMOOUD is allegedly receiving his 72 virgin…..NANNY GOATS, at Allah’s GOAT SHACK.

  8. PERHAPS NOW……..
    …………the REST OF THE WORLD will come together, form a 50,000,000 man army …….segments of which will travel to each country on earth, and clean out the ISLAMIC JIHADIS, and send them back to the 4th century, and lock the door so that they cannot return. There is only one way to do that, and it is OBVIOUS,………..A BULLET BETWEEN THEIR EYES! At the same time we need to BEHEAD the practitioners of the RADICAL ISLAMIC BULLSHI# so that the idiology will die as well. Then we put the heads of the BASTARDS in clear sight for as long as it takes for the BULLSHI# to END, and (feed their bodies to the sharks).

  9. As American’s, we better listen well to this woman…or your grandchildren will be wearing burka’s…..

  10. and the damn UN is behind all of this world chaos now !….get that communist/Islamic organization out of the United States and get the United States out of that bunch of people who want to destroy us.

  11. and now……….
    ………the house has voted 242 republican votes, and 47 democratic votes to pass the bill which requires background checks on EVERY so called refugee, which the FBI director, and a couple of others have said at present we do not have such a capability. The bill has enough votes to make it VETO PROOF.

  12. These people who have the president’s ear are dead serious….they want to kill us and they want to destroy America from within…..

    This is the most informative video I have ever watched concerning the spider web of the interconnecting Islamic organizations in America that is preaching and practicing violence operating against America…..and they are all receiving a FREE PASS from our president…do you wonder why?

  13. A WHOLE LOT OF ISSUES…..NOT MANY ANSWERS….

  14. This is the best demonstration of exactly why our immigration policy is not effective and what we are doing isn’t worth a “bean”…….

  15. oldsoldier79
    ……….when you said “SPIDER WEB” you was putting it mildly. I got a question: Where the hell did she go to school? She can barely talk let alone talk intelligently. Potential Soetoro admirer, and supporter. Couldn’t understand much of which she had to say.

  16. One thing for which we can be thankful to Obama:
    Best firearms salesman ever !

  17. CW………
    ………….today I read at Comcast News that Anthem, and Aetna are also hemorrhaging money. Anthem has said that it is still too early to consider pulling out of ACA sites. Both companies have asked for rate increases in the 30% range. I think that a mere 30% would only slow the bleeding but NOT STOP it. I have a friend here who is an actuary in the insurance industry. He recently stated that it would require at least a 50% rate increase to make any real difference in profitability for the healthcare providers. The Fed has been quietly making up the difference………but that cannot go on without serious consequences to ACA.

  18. hapnHal………
    …….I don’t think that I would refer to Soetoro as the best firearms salesman…….. rather I would say that he has become the biggest REASON for people to purchase firearms.

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