Obamacare Failing

Sep 7, 2017

Obamacare’s individual market is near collapse. Premiums are rising and health insurers are leaving the marketplace, according to insurance commissioners. Insurance commissioners from Tennessee and Oklahoma described the severity of situation. In Oklahoma, the insurance market began 2014 with five providers and now has one. One insurer incurred losses of $300 million. Insurance premiums have increased 130 percent over the last four years and 30,000 people have left the market because they cannot afford the premiums. “What we have now in our individual market is the consequence of encumbering a functional market with the burdens of becoming a federal tax distribution system,” said Oklahoma’s insurance commissioner. Tennessee has experienced a similar collapse. In 2010 there were a dozen insurers for the individual market and now the state is down to one provider. Tennessee’s insurance commissioner said, “[O]ver the last four years, our consumers have seen premium prices skyrocket while their plan choices have diminished.” The commissioners offered suggestions on how to resolve the crisis by expanding the use of health savings accounts. Allowing people to choose affordable high-deductible health plans, push for transparency in pricing of medical services, and address the cost of prescription drugs.