“While a record number of people—around nine in 10 Americans—now have insurance, private insurers on ObamaCare exchanges have signaled to the federal government their intent to increase premiums by double-digit percentages this fall. Some insurers active on the exchanges have gone out of business entirely, and many have lost millions of dollars. As the fall looms, some enrollees might be facing as much as 50 percent increases on premiums. Whether or not the Affordable Care Act can live up to its name is a bit of an open question.”
“On the one hand, despite the ominous news from insurers, everything could still be going according to plan. Supporters of the ACA knew that it would shake up insurance markets in rather unpredictable ways. Specifically, opening up plans to direct competition via ObamaCare exchanges was likely to force some insurers out of the market; larger insurers that could afford losses would be tempted to accept them to provide artificially low costs to squeeze out competitors. Some major insurers that have left the exchange markets, such as UnitedHealth, either entered them late or did not adapt to the profile of exchange beneficiaries, which saddled them with sicker, costlier patients to cover.”
Where’s ObamaCare going, and who can afford it? As things stand now, health exchange markets are unstable, insurers are edgy, many are leaving the market, not-for-profit government-supported insurers are going bankrupt, only about 25% of doctors are accepting exchange plans, young people are not signing up in requisite numbers to stabilize the market, and many people in individual markets will soon be unable to afford the affordable care act, with its skyrocketing premiums, deductibles, co-pays, and out-of-pocket costs.