Humana Among Insurers Who May Seek Health Care Bailout
Companies Report Only 67 Percent Have Paid Premium
(Washington, D.C.) – According to the National Center for Public Policy Research , the President and CEO of Humana recently acknowledged publicly that the company may seek a bailout as authorized under the Affordable Care Act (ACA), also known as Obamacare. The bailout provision of the law is opposed by 65 percent of Americans according to one recent poll. Nevertheless, the President's proposed 2015 budget authorized $5.5 billion for such insurer bailouts next year.
More companies may seek these bailouts if data provided to the Congress by insurers is any indication. According to the information supplied by those participating in federal exchanges, just 67 percent of enrollees had paid their first month's premium by April 15. Furthermore, only 25 percent fell between the ages of 18 and 34. Similarly, new enrollment figures released today by HHS place this figure at just 28 percent. Analysts have long suggested that insurers will lose money if fewer than 39 percent were in this young and healthy demographic, which generally costs far less to insure. If enrollment winds up lower than had been advertised, and the overall insured population is more costly than projected, we are likely to see some combination of insurer bailouts and higher premiums going forward.
Daniel Garza, Executive Director of The LIBRE Initiative released the following statement:
"After years of half truths and broken promises, it's time to be honest with the American people about health care reform. Rates did not go down. Millions could not keep their policies and their doctors. Millions have seen their options get worse, and not better. Costs are up. Taxes are up. Thirty million people will still be without coverage when this law takes full effect. And now it appears that enrollment will wind up lower than claimed, with insurer bailouts still to come.
It is far past time for supporters of this law to be honest with the American people. It is not delivering what was promised. The rules, mandates, and tax penalties it is built on are not working. It is time to reform the reform – by getting government out of the way, and putting consumers and patients in charge."