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My daughter has been getting re-enrollment reminders nearly every day for the past 3 weeks. So tonight, I jump on the CCH website to see what changes there are and surprise, they just announced they're closing operations at the end of December. Now we need to hunt for another plan for her, like a lot of people here.
From their website:
Consumers’ Choice Health Insurance Company (Consumers’ Choice) has agreed to a voluntary run-off and will not offer health insurance coverage in 2016.
“This was a difficult decision for the insurer and this agency, but this is what is in the best interests of South Carolina consumers and health care providers,” said Ray Farmer, Director of the South Carolina Department of Insurance.
“The recent announcement of a risk corridor reimbursement of just 12.6% cast doubt on the collectability of tens of millions of dollars through the federal risk corridor program and led to an unavoidable outcome,” said Jerry Burgess, President and CEO of Consumers’ Choice.
The issue is uncompensated care. When the uninsured and poor seek care, the providers (hospitals/docs) don't get paid.
Therefore, costs for uncompensated care are passed on to those with insurance coverage in the form of higher costs/reimbursements from the insurance companies to the providers, translating to higher premiums to the consumer and restricted provider networks (fewer/no PPO's - more HMO's).
Many hospitals in states without Medicaid expansion have experienced serious financial issues, some closing their doors. This has been going on for a while.
10/17/2015 article in our local paper stating, among other things, that our premier health system Froedtert - associated with the Medical College - has seen increased revenues because of the ACA and the quasi-expansion of Medicaid in our state (via BadgerCare). Walker, of course, won't have full-blown Medicaid expansion - but, whatever he did (still leaving tens of thousands uninsured) has been beneficial it appears. So, at times, there are perverse positive consequences in spite of opponents' best efforts to derail a program.
I found the entire article interesting reading - the pertinent excerpt:
Quote:
Froedtert Health attributed the 78% increase in operating revenue primarily to cost cutting and the increase in people with health insurance because of the Affordable Care Act and the state's partial expansion of BadgerCare Plus, its largest Medicaid program.
Other health systems in the metropolitan area also have benefited from the expansion in insurance coverage.
Further, gov in KY says Medicaid expansion has been a job creator throughout his state.
Many GOP govs are now realizing they (and their hospitals and citizens) can't afford not to participate in Medicaid expansion - but their legislatures are blocking them.
Quote:
The ideological gridlock in so many state capitals is inflicting serious harm on state budgets. But the greatest losers are poor people who cannot afford health coverage and the hospitals and providers who will have to take them on as charity care.
I would amend that quote to say the biggest loser is the private purchaser of health insurance who in many of those states is footing the bill via expensive limited offerings with increasingly restricted provider networks. The hospitals still get theirs in the end when uncompensated costs are passed on to the private payers.
Nothing like shooting one's citizens in the foot.
Last edited by Ariadne22; 10-31-2015 at 11:55 PM..
Very true. Even Alabama of all places is at least thinking about the Medicaid expansion to cover the pre-ACA fed funding they lost because they didn't accept the expansion.
Sounds like the states are getting desperate with that funding loss. Especially Florida and Texas.
I'd bet all states not having expanded Medicaid will fold on this issue. Sooner than expected.
No, but when you have people that make $19,000 getting health plans (or not) they don't have premiums rolling in to cover expenses. These co-ops did not do their due diligence and did NOT price their plans to to cover claims.
I was helping a friend pick plans last year. She needed surgery and wanted lower out of pocket costs. We looked at the co-op in her area and while the premiums and out of pocket costs were lower and a great deal, I warned her that they probably would not be around very long because her annual premiums and out of pocket costs didn't even add up to how much her surgery was going to cost. It wasn't even a major surgery, just a hernia repair. Her doctor wasn't in that network so she didn't choose the plan, but the money to pay claims comes from premiums collected and if they don't bring in enough, they can't pay claims and they just forced themselves out of business. It was poor planning on their part....
I just looked at the aca website and it is horrid what the prices are now ....some of you should take a look . My coverage is ending so I don't know what I will do since consumers choice is going out of business now , yes they are shuting down . you know it is so funny the government says we have to have this and yet they don't tell the drs they have to take it . This Obamacare was a F--UP from the start of the first ink to hit the paper . Reminds me of another program the obamas started called cash for clunkers which wiped all the good used cars off the market . Yeah good idea mr president send them to cuba and mexico yes you see those cars were not scraped they were sold to foreign countries such as mexico and cuba. I love all these outstanding plans the Obama administration seems to come up without a future for the plan in mind . January 2017 cannot come soon enough for me . I just wonder at what point will he sell our health plans to foreign countries ?
I just looked at the aca website and it is horrid what the prices are now ....some of you should take a look . My coverage is ending so I don't know what I will do since consumers choice is going out of business now , yes they are shuting down . you know it is so funny the government says we have to have this and yet they don't tell the drs they have to take it . This Obamacare was a F--UP from the start of the first ink to hit the paper . Reminds me of another program the obamas started called cash for clunkers which wiped all the good used cars off the market . Yeah good idea mr president send them to cuba and mexico yes you see those cars were not scraped they were sold to foreign countries such as mexico and cuba. I love all these outstanding plans the Obama administration seems to come up without a future for the plan in mind . January 2017 cannot come soon enough for me . I just wonder at what point will he sell our health plans to foreign countries ?
And what's to say whomever takes office in 2017 won't repeal the ACA so you have NO insurance...and repeal Medicare, etc. You do realize without the ACA you would have NO insurance, right????
As for the cash for clunkers...they were not good used cars so....
Colorado lost their Colorado Health OP. It's all over the news but is oddly still listed as of this morning on the exchange as an option.
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Uncompensated Care.......
