Which health plans are being hit the hardest by the Obamacare marketplaces?
- by admin
The U.S. health care industry is being hit hard by Obamacare, according to a new report from health insurance giant McKinsey.
The report, which was released on Monday, shows that premiums have gone up and out of control in the Obamacare health care exchanges and the overall health care market in the U.K.
The McKinsey report, titled Health Insurance Market Snapshot: How the Health Care System Is Affecting Consumers, finds that premiums for individual plans have gone from an average of about $100 per month in 2016 to $315 in 2020, and that the average price of a bronze plan is about $180.
The Obamacare market has become a financial mess for insurance companies, with some plans dropping out of the market and others being forced to sell their policies to others who are willing to pay a higher premium.
“We’ve seen the market inefficiency in premiums and that’s really been a major driver of this,” McKinsey co-founder and chief executive officer John McAfee said in a statement.
“The market has been so out of whack that even insurers have begun to lose money.”
McAfee said that as more people have seen their insurance premiums increase, it has become clear that insurers have lost their ability to compete.
“Insurers have lost the ability to offer coverage and to keep paying premiums,” he said.
McAfee believes that the market is in a dire state, but that it will not get better.
“I think that for insurers, what we’re seeing is they’re not making as much money as they once did,” he added.
McKinsey found that the number of insurers dropping out the Obamacare markets has been increasing steadily over the past few years, as the Affordable Care Act is implemented.
The U.C. San Diego Medical Center, which has a large number of uninsured residents, has seen its premiums increase by about 20 percent since 2010, while the Mayo Clinic has seen an increase of almost 20 percent.
McKenna said that there is an increase in the number and severity of claims from insurers, which he attributed to a growing number of patients with pre-existing conditions.
“People who had pre-conditions for their conditions were getting them covered,” he told The Wall Street Journal.
“We saw this increase in pre-condition claims.”
McKinley also found that in the past three years, insurers have cut back on their reimbursements for covered services to reduce costs, and have lost money on their investments in those services.
In addition, the number in the individual market has grown substantially, reaching 1.2 million people last year, up from less than 900,000 in 2016.
McLean added that the situation is likely to get worse in the years to come.
“In the years ahead, the marketplace will be more fragmented, more competitive and will likely be more uncompetitive,” he explained.
“It’s going to take a lot of work to get the market back to health status that we’re accustomed to in the United States.”
McKenzie estimates that Obamacare will lead to about one-third of all U.N. aid being spent on health care in the next decade.
The U.S. health care industry is being hit hard by Obamacare, according to a new report from health insurance giant…