Right from the beginning, Obamacare was met by consumers with the criticism. But insurance companies needed to take their time to understand the disadvantages of such system. And finally, they did. After the decision of the biggest insurance company UnitedHealth Group to leave 34 states without the Obamacare medical insurances last April, Aetna eliminated itself from Obamacare exchanges as well but only in the 11 states.
The question is who will fall out next?
The common concern for the insurance companies is to provide a necessary support after the unpredictable events, like a car crash or any unhappy accident. These are kinds of a solid insurance and consumers are eager to participate as well as the insurance companies.
With the Patient Protection and Affordable Care Act, it is different. Routine medical exams are available without the charge, but serious, more specific operations like surgery can be worthy of $7,000 to $11,000.
Aetna spokesman T.J. Crawford explained his decision on August 16. He said that it was purely a business decision that was made because of the unpredictably big medical costs. The number of losses was estimated at $200 million and was predicted even to be equal to the $300 million in the end of the year.
Insurance companies keep making losses because of the smaller than it was expected number of the Americans, who are ready to sign up for Obamacare. As a consequence premiums became higher and more generally healthy people dropped out or didn’t sign up for the insurance. All of this creates a financial irregularity.
22 million were supposed in the opinion of the Congressional Budget Office to enroll in the Affordable Care Act. Comparing it to the actual less than 13 million people in 2016, you will get the idea of the Obamacare’s advisability.
Even the threat of penalties doesn’t bring young people to sign up for the insurance. They simply don’t want to pay expensive premiums considering the fact they are healthy and don’t need much medical care. But as the matter stands namely with their money it was assumed to cover medical care for the old or chronically sick people.
Yet young people prefer not to rely on the insurance even paying the penalty.
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The government still hasn’t bailed out the companies according to the rule that federal agencies have to get an appropriation from the Congress before the bailing out for the Obamacare losses.
Lacks Instead of the Benefits
Obamacare is a very hard plan to bring into the life. It is an expensive project, which forces consumers to pay for what they don’t necessarily need.
For instance, coverage for maternity for the people, who stopped having children and drug abuse coverage for those, who don’t have problems with that.
Unfortunately, there is no possibility of choice. They can’t have an uncomplicated plan that includes only major diseases like cancer, heart illness or just any unhappy accident.
Moreover, the amount of money, which they have to pay before they can use the insurance, is so big that coverage doesn’t pay off enough. In accordance, it doesn’t make much sense to have such kind of insurance.
Obamacare forces more and more insurance companies to fallout from the Obamacare system. Finally, there will be nothing left except for the converting program into a public plan or simply its cancellation.
What Are the Other Ways?
There are other variants of the health insurance framing, that were offered by Speaker Paul Ryan and presidential candidate Donald Trump. Both of them have the benefit, which Obamacare lacks: flexible, individually adjusted insurance plans. It will guarantee the stability of the insurance system as more people will be interested in the getting an insurance.