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January 13, 2014
New York Times, Washington Post Finally Report What Everyone Else Has Known for At Least Six Months: Obamacare Has Thrown Insurance Into Chaos, and This is All Just a Prelude to the Next Big Batch of CancellationsOr, as Obamacare defenders call cancellations followed by roiling chaos: "transitioning." The New York Times reported (on Saturday, the least-read day of the news week) that the insurance market was in chaos, with insurers not knowing who their supposed insured clients even are. Digested at Hot Air: In addition to the difficulties many face in proving they have coverage, patients are also having a hard time figuring out whether particular doctors are affiliated with their health insurance plan. Doctors themselves often do not know if they are in the network of providers for plans sold on the exchange. ObamaCare SuperFan Ezra Klein interviewed Obamacare critic and insurance industry executive (i.e., someone who actually knows something) Bob Laszewski and heard similar grim tidings. @benk84 linked this in the morning news dump, but here's some of the more important stuff: There are two things [insurance companies are doing with the massive pile of botched, error-ridden 834s Obamacare is generating]. There are some obvious errors you get and the insurer can go back to the customer and straighten them out. That’s a very laborious task. The other thing that the administration is doing is a manual reconciliation. There’s unfortunately no computerized check between who HealthCare.Gov thinks is enrolled and who the insurance industry’s computer systems think is enrolled. So it’s being done manually. That’s a big problem. Laszewski also says everyone's all but given up on the prospect of getting balanced risk pools in Obamacare: It’s not positive. I don’t want to say people have given up on the notion they’ll get a good mix. They know the administration will make a big push. The insurance companies will spend big on advertising and outreach. So no one has given up. But it doesn’t look good right now. And all that, the Washington Post is surprised to discover, is just a preamble for what's coming. Also digested at When millions of health-insurance plans were canceled last fall, the Obama administration tried to be reassuring, saying the terminations affected only the small minority of Americans who bought individual policies. If you like your plan, you can keep it: Except we've rigged the game such that no one can offer you your previous policies and remain solvent. The transformation of the small-group market is just one of the many ripple effects of the Affordable Care Act that will reshape the insurance industry in coming years.... I love that: "transformation," "ripple effect." Especially "ripple effect," as if this was not the central intention of the scheme. The impact of cancellations in the small-group market is expected to be less dramatic than in the individual market, partly because a higher percentage of small-business policies provide more generous benefits. Still, the changes being made by the insurance industry are leaving some small-business owners confused and disillusioned about the law — whether it is directly to blame for the changes or not. Um, the law is directly responsible, but thanks, WaPo, for making it an allegedly Open Question about what is to blame for this. Also, the Washington Post is working from Obama's Big Book of Lies in this paragraph -- claiming the new policies are only more expensive because they're "more generous." They're actually less generous. The majority of the premium hike is due to forcing healthy people who buy insurance proactively (i.e., before becoming seriously sick) into a pool with unhealthy people who only attempted to buy it after becoming sick. Stephen Lohman, owner of Allegheny Plant Services, a trucking company in Pittsburgh, said the Aetna PPO plan he offers his 38 employees will be discontinued at the end of this year. He said he has been offered a new Aetna policy with premiums that are 40 percent higher, and that other insurers’ rates are similar. 40% higher premiums. Just "ripple effects," you know. By the way, @benk84 derives his sense of self-worth from the number of followers he has on Twitter. | Recent Comments
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