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Finding out what’s in it: This excellent article outlines honestly the problems Obamacare is causing for the health insurance business, resulting in one-third increases in premiums in Colorado.
The seeds of RMHP’s current financial strain were sewn in 2014 when all health insurance carriers were required by the Affordable Care Act to sell insurance to anyone, without exception, Salazar said. That brought thousands of sick Coloradans with pre-existing conditions into the new health insurance marketplace. People previously denied insurance could now obtain coverage, she said.
In all, Colorado has added about 600,000 people to the health care system since 2013, including 140,000 people who signed up for individual coverage through Connect for Health, the state’s online health insurance marketplace. At the same time, 450,000 people enrolled in Medicaid or the Children’s Health Insurance Program, the Colorado Trust reported.
Many new enrollees were among the sickest because they failed to seek medical treatment in the past because of a lack of insurance, ErkenBrack said. The ACA prevents insurance carriers from pricing insurance products as traditionally done in the past because it prohibits the exclusion of people with pre-existing conditions, Salazar said. Without the ability to exclude or charge someone more in premiums based on health status, it’s much more difficult for insurance actuaries to establish proper premiums. Accurately anticipating the number of claims and their cost, then setting the right premium, is how insurance companies earn income.
To pay for these sick customers the insurance companies are forced to raise rates. In this case, they need a 34% increase to pay the cost. If they don’t get it, they will lose money and eventually go out of business. And if they do get it, they face ruin anyway because no one can afford these rates.
Thank you Democrats and Obama! Your wisdom in destroying the health insurance industry knows no bounds! It is just what the American people wanted!