Humana to quit Obamacare exchanges in 2018, providing fuel for Trump’s ‘repeal’ efforts

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From Yahoo:  While Republicans continue to grapple with plans to repeal and replace Obamacare and stabilize health insurance rates, Humana (HUM) is the first major insurer to say it is dropping out of the individual market for 2018.

“Based on our initial analysis of data associated with the company’s health-care exchange membership following the 2017 open enrollment period, we continue to see further signs of an unbalanced risk pool,” said Humana CEO Bruce Broussard, on a conference call with analysts Tuesday. “Therefore, the company has decided that it cannot continue to offer this coverage for 2018.”

In the wake of the news, President Donald Trump tweeted that the insurer’s decision was another example of the failure of the Affordable Care Act, and he reiterated his plan to “repeal, replace & save healthcare for ALL Americans.”

The health insurer made the announcement with its earnings update, following the mutual termination of its $34 billion merger agreement with Aetna (AET) earlier in the day. The two insurers agreed to part ways , after a federal court judge blocked the deal on antitrust grounds.

Humana now expects to earn $10.80 to $11.00 per share for 2017, excluding anticipated losses on its exchange business.

Humana cut back its Affordable Care Act exchange participation to 11 states last July, when the Department Of Justice sued to block its deal with Aetna. The insurer said that despite efforts to mitigate losses on its exchange plans in 2017 through narrower networks and selective market participation, it is seeing early signs of high pharmacy utilization among its new members.

Right now, the insurer estimated that it will lose a modest $45 million on ACA exchange plans, but it cautioned that this is an early estimate and “a number… that we’re going to have to evaluate.”

Other health insurers have threatened to pull out of the individual market if there is no clarity from Capitol Hill or Trump’s health officials on stabilizing the markets, but Humana is the first to say that it will pull out altogether.

Leading up to 2017 open enrollment, the exchange markets experienced tremendous turbulence last year, after most major insurers, including Humana, cut back on participation after suffering big losses on exchange plans.

Humana is a leading Medicare Advantage plan provider, and executives said that they don’t believe that they can achieve the same kind of health-care models on the Obamacare exchanges that they achieve with health plans for seniors.

The company does not hold out hope for more detail on Republican “repeal and replace” plans in the near term.

“We’re really feeling that this organization needs to stay focused on what we do well,” Broussard said, and the company can’t do that with Obamacare plans. “I think with that particular program, the way it is designed today and most likely the way it is designed in the future, will limit our ability… to get back into that marketplace.”

DCG

 

 

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8 responses to “Humana to quit Obamacare exchanges in 2018, providing fuel for Trump’s ‘repeal’ efforts

  1. Those bone head rinos in Washington better understand that
    ‘We The People’ want them to take action and get behind the President. They keep trying to play it safe and basically not lose the vote of people that weren’t going to vote them anyway. We don’t want them there because it’s supposed to be a good job. We want them there to make the tough decisions that need to be made. What they are going to end up doing is to lose the confidence and therefor the vote of those that put them there to ASSIST Mr. Trump in the first place. They have always thought that they can stay there forever, but now they’re starting to have that questioned. They are panicking. They are worried. And they’ll pull anything to maintain the status quo.

    It’s not that I don’t want to trust people. It’s just that you can’t trust people.
    Crap. My tin hat is on too tight again.

    Liked by 2 people

  2. All these politicians need to realize that their political careers could be on very shaky ground with this Administration. The era of “Career Politicians” and “Corrupt Politics” will be coming to an end,and if one is a CORRUPT politician,that career will end more suddenly and finally than others. I’d expect “career politicians” will be facing more extensive and better enforced Term limiting,so they’d better have another line of work in the wings for when they leave,voluntarily or otherwise. If they are on record as supporting ACA,it’ll work against them in the end. I imagine if one is an honorable representative,in Government for the right reasons,he or she could expect more support and respect,and likely more job security.

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    • truckjunkie . . . I certainly agree with what you say. I have gotten emails from both of my bone-headed Senators (Merkley and Wyden) praising the joys of having Obamacare, and their willingness to fight to the death any plan to replace it with something else. If they are willing to “fight to the death,” I just wish the death part would come sooner rather than later. Obamacare has been a disaster to our country. Together with the fact that our Congress is empacted (think extreme constipation) by the fact that the same losers have stayed in place for far to long!

      Liked by 1 person

  3. I hope they all leave this atrocity, meant from the very beginning to tax the individual, chip them and make them slaves.

    I truly hope and know really, this will not work in anyway. Many doctors have already left this crap and take payments now….clinics are moving on up because of this also…they require upfront payment.

    I believe when it is my time…..it is my time and there is nothing on the Lords green earth that will stop it nor am I willing to…slow dye either…that is stupid crap to me!

    Corinthians clearly tells me there are ‘seasons’ for everything.

    Government out of my body and my bedroom now!

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  4. Shappens . . . You have spoken wisely, and I certainly agree with getting the government out of our business. It is Eternally correct that for each and every one of us there is a season, and it makes no sense to pro to prolong our lives, when in fact going to the other side is put a extension of our life here.

    What I really cannot conceive is that probably 12 years ago my practitioner charged $110.00 per visit. Then she retired, so I went with a new doctor . . . it is unbelievable that the base charge for a visit is $340.00. Of course the doctor’s office does not get that much because Medicare pays only a set amount. Gosh! I remember in the early 1970 when I paid $6.00 cash for a doctor’s visit. Something is certainly wrong with healthcare as it currently stands.

    Liked by 1 person

  5. Historically, Kaiser Wilhelm in Germany, just as the young Hitler was beginning to make inroads in German politics…( making the Kaiser very nervous about losing his “power” )said openly that the way to bring the populace to him and to his political friends was for the state to control their health care—-do this, he said, and you will “own them” for eternity.

    People who don’t know history…..are doomed to repeat it. We ALMOST did this….against the will of most……against the Supreme Court ruling of Roberts, who , without sending the Obamacare bill back to Congress, CHANGED the mandated designation from “penalty” to a “Tax” in order to make it “legal.”

    I know that Trump is a political innocent…and I know that he will have to gradually “feel his way” along the corridors of our Executive branch….but I also know that he has NO DOG in the hunt….he is beholden to NO ONE…he has NO reason to seek wealth or power or influence or other things from the office of the Presidency of the USA…..because, he already earned and owned all that in his “other life” as a businessman….and, he also does not “owe” the PRESS or any journalist ANYTHING……which is making them all melt down like he threw water on them, a ‘la “Wicked Witch of the West,” and they are slowly mellllllting……( “Curse you, you evil little industrialist, capitalist, billionare!!!!!! I’m melllllllting!).

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