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Megan McArdle: How Marriage Makes You Rich and Stupid | Main | The Human Foible of Believing Oneself Superior to Others Extends Even to... Prisoners
January 10, 2014

And Here...
We...
Go!: Humana Informs Shareholders That It Will Likely Make Less Money Due to "Adverse" Mix of Healthy and Unhealthy Obamacare Enrollees

It begins.

[I]n a filing with the Securities and Exchange Commission, Humana disclosed to investors, "as a result of the December 2013 federal and state regulatory changes allowing certain individuals to remain in their previously existing off-exchange health plans, the Company now expects the risk mix of members enrolling through the health insurance exchanges to be more adverse than previously expected."

The regulatory change Humana is referring to is the "administrative fix" announced by the Obama administration aimed at allowing individuals to remain enrolled in their current plans, which had been cancelled as a result of requirements imposed by the law. Obama announced the "fix" after a storm of criticism over his broken promise that anybody who liked their plan could keep it. Insurers had been depending on those with cancelled plans (who tend to be healthier) to end up obtaining insurance through exchanges.

Meanwhile, Blue Cross Blue Shield wrote a talking points lobbying memo warning that if Republicans succeed in ending the "risk corridor" bailouts to the insurance industry (which will be massive, due to the "adverse" mix of health and unhealthy enrollees), the result will be the bankrupting of the system -- and the coming of single-payer.

They're saying this to spook us so that we will agree to pay them off and make them whole over the corrupt, and now unprofitable, bargain they struck with Obama.

I say we roll the dice.



digg this
posted by Ace at 05:03 PM

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