Monday, August 22, 2016

Big Health Insurers Suck Medicaid Teat



The Obamacare deaths knell maybe sounding for individual policy holders.  Aetna announced that public exchanges are unsustainable and they may have to forgo further participation despite federal government subsidies.  However, there is a profitable teat this crony is all too willing to suckle from: Medicaid.


The Affordable Care Act udder is full of taxpayer dollars.  Insurers are finding out it’s much more profitable to do business with a federal government single-payer system than it is forcing citizens to buy their product.  Here is an excerpt from the Charlotte Observer.


Aetna regretted its decision, said CEO Mark Bertolini in the statement, but doing business in the Obamacare marketplaces created “significant sustainability concerns.”

It’s the same complaint other insurers have voiced about Obamacare, and it mirrors what Bertolini said just two weeks ago in a second-quarter earnings call. But earlier this year, Bertolini let slip another figure that didn’t make it into Monday’s six paragraphs: Aetna enjoyed a record $6.5 billion in government program premiums in the first quarter.

In other words, doing business with the government isn’t so bad after all. In fact, it’s gotten especially good since Obamacare came along, thanks largely to the Affordable Care Act’s expansion of Medicaid in most states (but not yet North Carolina.) Medicaid, like Medicare, offers the best of most worlds for insurers – it’s single-payer, government-financed insurance, and it has low enrollee costs. So while insurers like to gripe about the individual Obamacare exchanges, they have no issues with the big Medicaid profits that Obamacare helps provide.


A single-payer system has been the end game all along.  Is it any wonder Democrats, big hospitals and insurers have advocated states expand their Medicaid rolls? 


If they can’t force us to buy an overpriced, crappy product; they sure as hell will find a way to force us to enroll on a government program with crappy service.  Crony capitalism is expropriating the American way of life.
 
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