The Obama Era - I: The Stock Market
The Obama Era - II: Jobs and Wages
We've seen recently where the largest health Insurer in America, Aetna, said it would reduce the number of counties where it sells such policies to 242, from 778. This stems from a 2nd Quarter pre-tax loss of $200 million on just the policies in the Exchanges set up by the Affordable Care Act (ACA or Obamacare). United Healthcare and Humana also said they'll start pulling out of some Health Exchanges.
Of course Aetna's motives were questioned especially after the Justice Department's lawsuit to block Aetna's merger with Humana. As recently as April, Aetnaβs chairman and CEO, Mark Bertolini, said Aetna's presence in the marketplaces is βa good investment.β And in May, Aetna said that it might expand into other parts of the country.
That said, Congress could strengthen the market place to make the Act overcome this hurdle. Right now the imbalance between demand (mostly healthy young people who pay the fine rather than buy insurance) and supply (mostly older folks who need healtjh care), is what Congress can help with by extending tax credits to encourage more demand.
The ACA brought about changes to the health insurance market with regulations on pricing and benefits, but it did not result in costs going up other than for a small segment of the market - small businesses and independent contractors. We know that not only will the cost curve, now higher in the early years of the Act, come down and total spending on healthl care as a percentage of the GDP will be held in check from the upward tilt prior to the Act, but look at the millions of uninsured who now have health coverage. Insurers cannot now exclude you because of prior conditions. The Act got rid of fee-for-service where you pay for every (over)visit, every (over)prescription and now you pay to correct the illness and not having to over spend because providers want to earn a few more bucks.
Now there is a focus on preventative being paid for now by the Insurance companies.
The Act is complex and obviously needs many fixes but Obamacare was a good start. As Obama has said on occasions "do not let the great be the enemy of the good". All major social legislation were flawed (Social Security, Medicare and Medicaid) but they were eventually fixed. The States with Republican Governors and Republican Legislative majorities have made it difficult for the Health Exchanges (what else is new!), but you know what - you can't keep a good thing down. Think of post-illness costs that are now being kept lower because of preventative mandates (like mammogram, screening, etc.).
Death Panels anyone? Obama will kill your granny!!! Sarah Palin???