The American Enterprise Group in October announced it will stop non-group health insurance in 20 states. This means 35,000 people will lose their coverage. The company also notified 110 employees in Iowa nd Nebraska they would lose their jobs as well. It blamed “instability” caused by the health care law.
Some 1,200 companies and 5,200 employees and dependents will be at a loss when Aetna in Colorado moves clients off its plans this year. Aetna also has “dropped out of the small-group market in Michigan and several other states,” Turner reports.
Humana and Unicare reportedly are cutting back or ending business because of restrictions in the health law.
One of the provisions of the health overhaul that its supporters brag about is the silly requirement that employees can add their 26-year-old “children” to their policies. This makes it doubly ridiculous that another policy is causing huge losses of coverage among actual children whose parents were buying health insurance policies for them on their own.
Then HEW Secretary Kathleen Sebelius told insurers they must write policies for kids under 19, including youngsters with preexisting conditions. This made parents wait until their children developed a serious medical condition. “Rather than wait for this to happen, many carriers decided to leave the market altogether,” wrote Turner.
The Administration promised that employers offering coverage would be “grandfathered” in and could avoid many of the rules of he law, But the regulations the Administration developed “were so onerous that few companies will be able to comply,” she explained.
The Obama Administration expects that by 2013 most of the 133 million people with coverage through their large employers and up to 80 percent of the 43 million people in small employee plans “will lose their grandfathered protection,” according to Turner.
Beginning his year, “insurance plans must provide rebates to plan enrollees if they can’t meet the standards of the medical loss ratio rule.” Many companies will lose many million of dollars under MLR.
ObamaCare spending cuts also threaten Medicare Advantage. More than one-fourth of seniors have enrolled in private health plans through Medicare Advantage. (But Secretary Sebelius hates the idea of private sector involvement or competition). The law mandates that $136 billion be stripped from Medicare Advantage over this decade to help pay for new health care subsidies. The Congressional Budget Office (CBO) estimated Medicare Advantage cut would be $136 billion between 2010 and 2019.
The know-it-all smarts that guides the menagerie of regulations for ObamaCare will “continue to cause a cascade of lost coverage because it is ignoring market forces in favor of Washington rule-making,” Turner concludes.
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