This is not a surprise. It is a regular drip-drip that is on the verge of turning into an unstoppable torrent. The entire premise of Obamacare is similar to a Ponzi Scheme. It relies upon people who don’t need health insurance being forced to buy that product in order to subsidize people who need/want the product.
The market for individual and family policies bought outside a corporate health plan has been particularly troubled. The Obamacare mandates made these policies much more expensive than they should be (but good news, men, your policy covers birth control pills and IUDs) and the future of subsidies is in doubt.
Now, from Minnesota, we get the news that Obamacare is working as advertised:
Minnesota’s largest health insurer, Blue Cross and Blue Shield of Minnesota has decided to stop selling health plans to individuals and families in Minnesota starting next year. The insurer explained extraordinary financial losses drove the decision.
“Based on current medical claim trends, Blue Cross is projecting a total loss of more than $500 million in the individual [health plan] segment over three years,” BCBSM said in a statement.
The Blues reported a loss of $265 million on insurance operations from individual market plans in 2015. The insurer said claims for medical care far exceeded premium revenue for those plans.
“The individual market remains in transition and we look forward to working toward a more stable path with policy leaders here in Minnesota and at the national level,” the company stated. “Shifts and changes in health plan participation and market segments have contributed to a volatile individual market, where costs and prices have been escalating at unprecedented levels.”
The decision will have far-reaching implications.
Blue Cross and Blue Shield says the change will affect about, “103,000 Minnesotans [who] have purchased Blue Cross coverage on their own, through an agent or broker, or on MNsure.”
As Margaret Thatcher said, “the problem with socialism is that you eventually run out of other people’s money.” Never has this been proven more correct than as we watch the havoc Obamacare is wreaking on the US economy and the health care industry.