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Another insurer has left the individual market, but this one raises some eyebrows. Care connect is from NY which has a pretty stable individual market, secondly it is a subsidiary of the largest healthcare provider in the state, Northwell Health. It complained of not being paid from the risk corridor program but also complained of being forced to pay into the risk adjustment program which was a staple of ACA making insurers with good pools contribute to help those with worse pools.
My insurer, Oscar Heath continues to lose money in NY and is supposed to pick up some of these customers. I wonder how long the individual market will survive with or without risk corridor payments.
Granted lower than expected enrollment of healthy people and too many sick people didn't help. GOP defunding of the risk corridors was the determinative nail in the coffin and the major cause of the failure of the coops.
My intuition not to support Rubio last year was right on. I didn't know about this, but I knew something was wrong with him. These stupid political games have got to stop. Why can't they see many people will be hurt by these games?
Another insurer has left the individual market, but this one raises some eyebrows. Care connect is from NY which has a pretty stable individual market, secondly it is a subsidiary of the largest healthcare provider in the state, Northwell Health.
It seems the number of enrollees means nothing anymore because of no denial for pre existing conditions. You would lose money on every sick person you enrolled.
What irks me is the CEO of Northwell Health was/is a big proponent of ACA. The "non profit" health system made 11 billion in profit last year yet won't take a hit on its insurance business. Then to top it off he complains about the money he is obligated to pay into the system because of ACA rules.
If this company can't/won't make the individual market work, is there any hope?
[quote=NSHL10;49318980
What irks me is the CEO of Northwell Health was/is a big proponent of ACA. The "non profit" health system made 11 billion in profit last year yet won't take a hit on its insurance business. Then to top it off he complains about the money he is obligated to pay into the system because of ACA rules.[/quote]
Not a week goes by when someone here reveals their ignorance on this. "Non-profit" is an IRS classification that does NOT mean a profit cannot be realized.
Not a week goes by when someone here reveals their ignorance on this. "Non-profit" is an IRS classification that does NOT mean a profit cannot be realized.
The hundreds of people that work for the non-profit company go to work every day for the same reason the rest of us do.
I did know that. The reason why I quoted it is because this CEO of Northwell Health has been quite vocal about its mission of providing health care for people while gobbling up smaller hospitals and reaping lots of benefits in property tax savings versus other businesses. If the corporation had such a surplus and believes so strongly in its mission statement, one would think they had the financial wiggle room to try to keep the insurance company working instead of dissolving it because they didn't get enough of a handout from the government.
Granted lower than expected enrollment of healthy people and too many sick people didn't help. GOP defunding of the risk corridors was the determinative nail in the coffin and the major cause of the failure of the coops.
According to the article, the risk adjustment which is the regulation that better positioned insurers pay those with worse pools was the reason the company was folded. They paid 112 million last year and we're scheduled to pay 100 million next year. It also said the risk corridor program was to end in 2015 as per ACA. I remember when ACA was passed that the assistance from the govt wasn't supposed to be long term.
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