Last month, UnitedHealth Group announced it would withdraw from the Obamacare exchange. The insurance company’s decision promises to leave a large hole in the Washington State Health Exchange.
As Shift reported, insurance company’s withdrawal is comprehensive. It is also leaving the Small Business Health Options Program (SHOP) in Washington State. That means our state will be left without a statewide insurance company.
UnitedHealth Group’s decision is further proof of the colossal failure that is Obamacare. And, it’s just another bad policy Democrats will have to explain come this November.
But, as if that’s not bad enough, the situation gets worse… for Democrats. A week before the November elections, the Obamacare exchange will open and Americans will see double-digit insurance rate hikes. Via Politico:
“Proposed rate hikes are just starting to dribble out, setting up a battle over health insurance costs in a tumultuous presidential election year that will decide the fate of Obamacare.
“And the headlines are likely to keep coming right up to Election Day since many consumers won’t see actual rates until the insurance marketplaces open Nov. 1 — a week before they go to the polls.”
The Obamacare exchanges do not make financial sense for insurance companies — a reality that forces insurance companies to raise rates. Simply put, young and healthy consumers prefer to pay the $695 tax or 2.5 percent of their income (whichever is higher) rather than enroll in pricey insurance that they are unlikely to use.
As Politico points out, a mere “28 percent of HealthCare.gov customers for 2016 were between the ages of 18 and 34, significantly below the 35 percent threshold typically considered necessary for a balanced marketplace.”
As more insurance companies warn of unsustainable loses and seek approval for premium increases next year, it’s increasingly likely more and more Democrats will attempt to create distance between themselves and the (UN)Affordable Care Act.