Humana Breaks Up with ObamaCare on VDay

Home Tyler Cralle Humana Breaks Up with ObamaCare on VDay
Humana Breaks Up with ObamaCare on VDay

On a day filled with love and companionship, one of the countries largest insurance companies told ObamaCare it was donezo

Humana spokesman Tom Noland confirmed that Humana, which had already scaled back its Obamacare participation, would stop selling coverage both on and off the individual exchanges in 2018. It has 152,000 customers in those plans. Federal law bars insurers from re-entering the marketplaces for five years, assuming they discontinue all types of individual policies.

Their reasoning is not surprising at all.  They said there are too many sick people on the exchange and not enough healthy people. This is what is referred to as the “death spiral.”  The GOP has been predicting this since ObamaCare became law 8 years ago.   Hope and subsidies delayed this from happening, but it seems the snowball has begun to roll.

This presents quite the dilemma for the GOP. Behind the scenes, massive infighting about the best way to replace ObamaCare has effectively paralyzed repeal efforts.  The GOP only has 4 options 1) Do nothing 2) Try and fix it 3) Repeal it 4) Repeal and replace it.  The first one is the only one that may spare the GOP the brunt of public outcry when millions of people either lose their insurance or face massive rate hikes.  However, based on the media’s treatment of the GOP it’s likely they’ll still get a good portion of the blame.  The three other options are all death sentences for the GOP if they don’t work.  This risk-reward scenario even has the GOP throwing principles out the window to keep popular portions of ObamaCare on the books as Politico reported last week…

The Democrats publicly groused about the individual mandate and fretted about public discontent. But they concluded it was a necessary cudgel to persuade Americans — particularly younger and healthier individuals — to purchase coverage. Having a representative cross section of the population is essential in any system in which insurers are barred from discriminating against people with expensive medical conditions. 

But if Republicans kill it, most health care economists believe they’ll be hard-pressed to come up with an effective and politically tolerable replacement. 

Paul Van de Water, a senior fellow at the left-leaning Center on Budget and Policy Priorities, said the choice is simple. “Carrots are expensive,” Van de Water said. “Sticks are unpopular.”

The GOP seems like it is between a rock and hard place.  However, the decision is simple.  You have to repeal it and you have to replace it.  The idea that the GOP can just sit aside and let ObamaCare collapse and then be the saviors who come in and fix the healthcare industry is delusional.  The media will never let that happen.  They mainstream press will blame the GOP for not working with Obama to fix the problems in the law.  They’ll blame Trump for not forcing congress to save ObamaCare from the evil GOP.  The Republicans have to do something.  If they fail the press will beat them up, but as we just said that was gonna happen anyway.  This means the only option is to try and fix ObamaCare or replace is with something better and hope, for lack of better term, it succeeds.

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