The American Health Care Act, as Speaker Ryan talked about this morning on Fox & Friends, is “aimed at getting premiums down, letting people have a plan that they want, that’s more affordable.”
Right now, many families barely have any plans choose from, let alone find something that’s affordable. More than 1,000 counties—about one out of every three—are already down to their last insurer. We’ve just learned that 27 counties in Virginia will join that list. And many Iowans may end up with no options for buying coverage next year. Now another major insurer, CareFirst, sees Obamacare in “the early stages of a death spiral.”
In a CNBC op-ed, Robert Laszewski, president of Health Policy and Strategy Associates, talks about “a big factor” driving the problem:
“While some health care experts have stated recently that the insurance market is ‘by and large’ stable under Obamacare, troubles are clearly piling up. . . .
“A big factor in 2017 has been the impact this year's generally large rate increases have had on the unsubsidized market, that made up almost half of those buying Obamacare compliant policies in 2016. Because these people are taking the full brunt of the higher rates, the unsubsidized market is starting to melt off in what appears to be the early stages of a classic death spiral. Not only has the CareFirst CEO used that term but so did the Aetna CEO earlier this year.”
Recall that, in its last weeks in office, the Obama administration issued a report claiming that this year’s double-digit premium increases would be a “one-time pricing correction.” The report went on to state that the premium hikes would “lay a foundation for more stable pricing” and “foster increased competition.” (emphasis absolutely mine)
But instead of a ‘one-time correction,’ this year’s double-digit premium increases are begetting more problems. This is more proof that Obamacare is collapsing, and failing fast.
Learn more about how the American Health Care Act will help patients and families.