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Thursday, February 16, 2017

ACA and Medicare Death Spiral?

Aetna Inc. Chief Executive Officer Mark Bertolini escalated his criticism of the Affordable Care Act, saying Obamacare’s markets are nearing failure as premiums climb and healthier individuals drop out.
 
We have heard about death spiral for a long time not only for ACA but also for Medicare.
ACA and Medicare have to be tweeted to save them.  GOP would not do it under Obama now they have to.  Tweet the plan not total repeal is the answer.
I'm glad Aetna is leaving the ACA market.  One step closer to single payer system without the middle man.
This article is so stunningly superficial.

“It is in a death spiral,” Bertolini said in a video interview with the Wall Street Journal that aired Wednesday on the newspaper’s website. He predicted
that more insurers will drop out of the market for 2018, following Humana Inc.’s decision to quit Obamacare entirely for next year.
If this happens or better yet before it happens ACA should allow anyone to buy Medicare as their primary medical insurance.  This allows people to buy insurance across state borders. 
Aetna, too, is mulling whether to further reduce its presence in the markets set up by the ACA. The company cut its footprint to four states for this year, from 15, after losing about $450 million on sales of ACA plans last year.
Bertolini has been saying for months that the ACA’s markets are deteriorating. In October, he said that rising rates would push healthy people away from Obamacare, leaving insurers with sicker customers, and forcing premiums even higher.
This is the real question: Did ACA keep premiums from raising even more?
The increasing burden of medical costs as fewer and fewer healthy customers enroll are among the conditions that create an insurance death spiral.
To my knowledge there is no data this is true.  The penalty for not buying insurance is much higher now. 
Some health-care experts have disputed the idea that Obamacare is experiencing a death spiral. Matthew Fiedler, a fellow with the Center for Health Policy at the Brookings Institution, says the small decline in Obamacare enrollment in 2017 compared to 2016 was probably not driven by climbing premiums. Most individuals get subsidies, helping cushion the effect of rising costs.
I listened to Rand Paul's talk about the bill he put follow to replace Obamacare.
He wants to put high risk people in a risk pool. 
Apparently he will not give these people any subsidies.  He said his plan does not cost the gov't?
Where is the data showing how well risk pools worked before and if it was working why did we need the ACA to make a law covering them?
“Marketplace premium increases had little if any impact on marketplace sign-ups, providing strong evidence against claims that these increases would send the individual market into a death spiral,” he wrote in an analysis published Feb. 8 on the Brookings website.

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