Obamacare in “Death Spiral” As Insurers Continue To Drop Out
As the fight to repeal Obamacare drags on, another insurer has called it quits. Last week Humana signaled its intention to completely pull out of the Obamacare exchanges. The news comes after Humana and Aetna called off a merger, costing Aetna nearly $1 billion.
Last summer Aetna scrapped 70% of its Obamacare plans after $300 million in losses; their future participation remains unclear especially after their CEO recently said Obamacare was in a“death spiral.”
Death spiral couldn’t describe the situation better. Insurers have been dropping out one by one as their profit margins disappear. Aetna’s CEO described the causality like this, “too many sick people and not enough healthy people are signing up.” As premiums rise to cover costs, healthy people drop out and opt to pay the fine, forcing insurers out of the market.
And it’s not going to get better. Programs put in place to prop up insurers at the taxpayer’s expense have and will expire. Costs will continue to rise. Choice will continue to disappear. Obamacare needs to be repealed now. The longer Congress delays repealing Obamacare, the longer the current healthcare crisis lasts and the longer individuals must endure the rising costs and outrageously high deductibles.
Over a month ago the House took the first step in the repeal process but much more work remains. Only after members of Congress fulfill years of campaign promises to repeal can true reform to the healthcare system take place. Access to affordable health care won’t happen under the current system.
The longer Congress debates replacement options the more likely they’ll compromise the opportunity to follow through on repeal.