Comment: Highmark Health is spending $1.20 for every dollar they receive in Obamacare premiums. Isn’t this where we’re supposed to say “Oh goodie, that wonderful, wonderful Obamacare is squeezing those awful insurance companies to death”?
Sorry, here at OCTS we ask those inconvenient questions, such as, “If Highmark is spending $1.20 for every $1 in premiums, doesn’t this mean Highmark’s premiums will have to rise 20% for Highmark just to break even?” Yep. 20+%. And that means there’s more RATE SHOCK to come.
“Highmark Health’s operating losses exceeded a half billion dollars in 2015 largely due to massive losses in its Affordable Care Act marketplace plans, Highmark officials said Friday.”
““Those losses are unsustainable for anyone,” said Highmark Health President and CEO David Holmberg in a conference call.”
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“Mr. Holmberg acknowledged Highmark and other insurers misjudged the degree to which new marketplace enrollees would seek services. As a result, he said Highmark was paying out $1.20 worth of care for every $1 it received in premiums, resulting in a $590 million loss on ACA plans alone.”
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Highmark is responding by”redesigning plans,” raising premiums, and selling fewer plans. Hey, it’s another unsustainable, unaffordable #ObamacareFAIL. Great job, Gruber. (But then, what else would you expect from the stupidity of the American mastermind?)
“In light of its ACA losses, Highmark has redesigned plans, raised some premiums and cut back on marketplace enrollment. Mr. Holmberg said the insurer remains committed to providing access to health care through the marketplace but said other insurers need to do their part by offering more plans.”
Highmark Health’s operating losses hit $565 million in 2015
By Steve Twedt / Pittsburgh Post-Gazette, April 1, 2016 9:04 PM