Comment: A $1.172 billion bailout for 1.365 million enrollees amounts to $859 per insured person on California’s exchange!
CoveredCA policy premiums then are lies, at least $859 too low; understate the actual cost; and means that CoveredCA’s already-high average premium must rise at least $859 over the next two years as this Obamacare bailout program phases out.
Why is this happening? Because Obamacare is such a bad deal for most Americans that a whopping 60 percent of Americans who are eligible for Obamacare’s Slave Markets(tm) have not signed up, leaving the Slave Markets with only the sickest and poorest, most expensive 40 percent. These latter people only pay, on average, about one-quarter of their actual premiums, and you pay the rest. Obamacare is now officially a giant welfare program.
“Insurers writing coverage in California will receive more than $1.1 billion in federal payments under a reinsurance program created by the health care reform law, according to an analysis released Monday by Covered California, the state’s health insurance exchange.”
“[...] The biggest payments to California-based insurers will go to Anthem Blue Cross of California, $401.1 million; Blue Shield of California, $363 million; and Kaiser Permanente, $240 million, according to Covered California, which drew its analysis from a report issued earlier by the U.S. Centers for Medicare and Medicaid Services.”
“The $1.172 billion that California insurers will collect under the reinsurance program compares with the nearly $8 billion health insurers will receive nationwide.”
“[...] Covered California is the largest state insurance exchange program, with 1.365 million enrollees who have paid premiums as of March 31, according to an earlier CMS report.”
California health insurers get $1.1 billion from reinsurance program
By Jerry Geisel, July 6, 2015