Obamacare: ‘It’s Getting Worse’

SENATE REPUBLICAN COMMUNICATIONS CENTER

Contact: Antonia Ferrier 202.228.NEWS

Obamacare: 'It's Getting Worse' 'Obamacare's Health Insurance Markets Are Flirting With Financial Disaster'

SENATE MAJORITY LEADER MITCH McCONNELL (R-KY): "Let me begin with a statement of the obvious: Obamacare is a disaster. An absolute disaster... Americans were promised costs would go down but they skyrocketed. Americans were promised choice would increase but it shriveled. We've been warning that choices would continue their downward decline under the Obamacare status quo, and that's just what we saw this very week... This should be a wake-up call to the do-nothing crowd on the Left. Obamacare isn't working, it isn't sustainable, and it's going to continue attacking the middle class until it's repealed and replaced." (Sen. McConnell, Press Release, 2/16/2017) [http://www.republicanleader.senate.gov/newsroom/remarks/obamacare-is-unsustainable]

"Obamacare's health insurance markets are flirting with financial disaster... The insurance markets, which have been bleeding money, have taken one hit after another this week, beginning with news that Humana would become the first major insurer to pull out of the market completely next year.... Other insurers are sounding alarms about the imperiled market." ("A Bleak Week For Obamacare," Politico, 2/15/2017) [http://www.politico.com/story/2017/02/obamacare-trump-congress-repeal-replace-235074]

* "Obamacare is in a 'death spiral,' the influential CEO of Aetna, Mark Bertolini, declared Wednesday morning. Bertolini's doomsday prophesy: More insurers will pull out of the government-run marketplaces in the coming weeks and many areas will have no insurers to provide Affordable Care Act coverage in 2018. 'It's not going to get any better; it's getting worse,' Bertolini said in an interview at a Wall Street Journal event." ("Aetna CEO: Obamacare Markets Are In A 'Death Spiral,'" Politico, 2/15/2017) [http://www.politico.com/story/2017/02/obamacare-market-death-spiral-aetna-mark-bertolini-235041]

Another Insurer Abandons The Obamacare Exchanges

"Health insurance company Humana announced Tuesday that it would leave the ObamaCare market in 2018. The insurer said it would offer plans through 2017, but that the market has not stabilized enough to participate next year. Humana said it was losing money from taking on too many sick people without enough healthy people to balance the pools. The decision came after Humana scaled back participation and raised premiums, among other changes." ("Humana To Drop Out Of Obamacare At End Of 2017," The Hill, 2/14/2017) [https://origin-nyi.thehill.com/policy/healthcare/319538-humana-to-drop-out-of-obamacare-marketplace-at-end-of-2017]

* "The company said in a press release it has tried for the past several years to keep selling policies where it could offer 'a viable product.' It said it increased premiums, exited markets and tightened provider networks in hopes of stabilizing its individual market business. But an initial analysis of its 2017 consumer base found that it remained riskier than Humana could tolerate. So the company is exiting all 11 states where it sells individual policies, both on the Obamacare exchange and outside of it." ("Humana Pulls Out Of Obamacare For 2018," CNNMoney, 2/14/2017) [http://money.cnn.com/2017/02/14/news/economy/humana-obamacare-insurer/]

* "Humana had already sharply reduced its footprint in the Obamacare exchanges over the past year following financial losses. It sold plans in 156 counties across 11 states in 2017, down sharply from 1,351 counties throughout 19 states the previous year." ("Humana Becomes First Major Insurer To Quit Obamacare Exchanges," Politico, 2/14/2017) [http://www.politico.com/story/2017/02/aetna-humana-drop-merger-bid-234989]

"[T]he company is a leading source of coverage in some regions, including Tennessee, which has one of the shakiest markets. The pullout will leave no insurer in 16 Tennessee counties in 2018, according to the nonprofit Kaiser Family Foundation, which is tracking marketplace participation." ("Amid Obamacare Uncertainty, Insurance Giant Humana Plans To Leave Marketplaces In 2018," Los Angeles Times, 2/14/2017) [http://www.latimes.com/politics/la-na-pol-obamacare-humana-20170214-story.html]

* "Humana is also one of only two insurers in dozens of counties in states like Mississippi and Georgia." ("Humana To Drop Out Of Obamacare At End Of 2017," The Hill, 2/14/2017) [https://origin-nyi.thehill.com/policy/healthcare/319538-humana-to-drop-out-of-obamacare-marketplace-at-end-of-2017]

'The Past Year Has Been A Rocky One For' Obamacare

"The past year has been a rocky one for the landmark health reform law. Faced with sicker than expected enrollees, insurers pulled back from the market and hiked premiums." ("Humana Pulls Out Of Obamacare For 2018," CNNMoney, 2/14/2017) [http://money.cnn.com/2017/02/14/news/economy/humana-obamacare-insurer/]

* "There have been widespread concerns over the last year that the markets could collapse as insurers raised premiums sharply in the face of more costly than expected patients." ("Amid Obamacare Uncertainty, Insurance Giant Humana Plans To Leave Marketplaces In 2018," Los Angeles Times, 2/14/2017) [http://www.latimes.com/politics/la-na-pol-obamacare-humana-20170214-story.html]

FLASHBACK: Last Year, Two Insurers Pulled Back From The Obamacare Exchanges

"Aetna Inc. will withdraw from 11 of the 15 states where it currently offers plans through the Affordable Care Act exchanges, becoming the latest of the major national health insurers to pull back sharply from the law's signature marketplaces after steep financial losses." ("Aetna To Drop Some Affordable Care Act Markets," Wall Street Journal, 8/15/16) [http://www.wsj.com/articles/aetna-to-drop-some-affordable-care-act-markets-1471311737]

* "Aetna will reduce the number of counties where it sells exchange plans next year to 242 from 778, a dramatic turn that came a few weeks after the insurer said it expected steep losses for the year and would reconsider its participation in the market..." ("Aetna To Drop Some Affordable Care Act Markets," Wall Street Journal, 8/15/16) [http://www.wsj.com/articles/aetna-to-drop-some-affordable-care-act-markets-1471311737]

* "Aetna is pulling out of all but four states where it currently sells plans on the Obamacare exchanges for 2017." ("Aetna Pulling Out Of All But Four State Exchange Markets For 2017," Politico, 8/15/16) [http://politi.co/2aPyoMl]

"UnitedHealth Group said in April it would liquidate all its Affordable Care Act coverage." ("Aetna's Obamacare Shock," Wall Street Journal, 8/2/16) [http://www.wsj.com/articles/aetnas-obamacare-shock-1470178316]

* "UnitedHealthcare, the biggest health insurer in the United States, said Tuesday that it plans to exit most of the Affordable Care Act state exchanges where it currently operates by 2017. The health insurer had already indicated that it was dropping coverage of the plans, more commonly known as Obamacare, in Arkansas, Georgia and Michigan. But during a conference call with analysts Tuesday, CEO Stephen Hemsley noted that 'next year we will remain in only a handful of states.'" ("Unitedhealthcare To Exit Most Obamacare Exchanges," CNN Money, 4/19/16) [http://money.cnn.com/2016/04/19/investing/unitedhealthcare-obamacare-exchanges-aca/]

"Anthem Inc. said it is now projecting losses on its Affordable Care Act plans this year, a turnaround for a major insurer that had maintained a relatively optimistic tone about that business.... Anthem Chief Executive Joseph R. Swedish said that the insurer will re-examine its full-on commitment to selling plans on the health law's exchanges. Anthem will take a "prudent" approach to its future offerings, he said. Anthem has been a major player in the ACA marketplaces, with 923,000 exchange enrollees, and it offers the plans throughout the 14 states where it is a Blue Cross Blue Shield insurer." ("Anthem Projecting Losses On Affordable Care Act Plans This Year," Wall Street Journal, 7/27/16) [http://www.wsj.com/articles/anthem-raises-outlook-reiterates-cigna-purchase-plans-1469617063]

FORMER PRESIDENT OBAMA: 'Real Problems,' 'There Are Going To Be People Who Are Hurt'

FORMER PRESIDENT BARACK OBAMA: "...there are going to be people who are hurt by premium increases or a lack of competition and choice." (President Obama, Remarks, Miami, FL, 10/20/16) [https://www.whitehouse11.gov/the-press-office/2016/10/20/remarks-president-affordable-care-act]

* "President Barack Obama said his signature health-care law has 'real problems'..." (Bloomberg, 10/3/16) [http://www.bloomberg.com/politics/articles/2016-10-03/obama-says-obamacare-has-real-problems-congress-refuses-to-fix]

FORMER PRESIDENT BILL CLINTON on the consequences of Obamacare: "It's the craziest thing in the world." ("Bill Clinton Bashes Obamacare As 'Crazy System' While Campaigning For Hillary," The Washington Times, 10/4/16) [http://bit.ly/2cYW9RA]

* "'You've got this crazy... the people are out there busting it, sometimes 60 hours a week, wind up with their premiums doubled and their coverage cut in half,' Mr. Clinton told voters." ("Bill Clinton Bashes Obamacare As 'Crazy System' While Campaigning For Hillary," The Washington Times, 10/4/16) [http://bit.ly/2cYW9RA]

GALLUP: "Americans' assessments of the Affordable Care Act (ACA)... more continuing to disapprove (53%) than approve (42%) of the law. Going forward, the vast majority of Americans want to see the law changed." ("Most Americans Want Changes to Affordable Care Act," Gallup, 11/28/2016) [http://www.gallup.com/poll/198158/americans-changes-affordable-care-act.aspx'gsource=Politics&gmedium=newsfeed&gcampaign=tiles]

* "[I]t is clear that about eight in 10 Americans favor changing the ACA significantly (43%) or replacing it altogether (37%)." ("Most Americans Want Changes to Affordable Care Act," Gallup, 11/28/2016) [http://www.gallup.com/poll/198158/americans-changes-affordable-care-act.aspx'gsource=Politics&gmedium=newsfeed&gcampaign=tiles]

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