Yesterday the healthcare bill that had been proposed to replace the Obamacare healthcare plan was rejected in the House of Congress. It was not surprising if one takes the time to consider that the bill only had a seventeen percent approval rating in the United States. The thing is, even with the Obamacare bill still active, consumers nationwide are reeling from the effect of the amendments made to the bill by the Health and Human Services wing of the state.
Healthcare harsh to consumers, kind to insurers
Insurance companies are having a good time implementing the changes made the ACA, but they too suffer the drawbacks. For one, the insurance market is now highly volatile, making the insurers unsure whether to choose to continue with the Obamacare plan in the coming year. Already, companies like Humana (HUM) have chosen to withdraw from providing those services under the plan, with others like Molina Healthcare still mulling over their options. Molina plans to announce its decision in April. America’s Health Insurance Plans spokeswoman Kristine Grow was quoted saying that ‘the market stability needs a lot of work from the government yet.’
For that one major downside, the insurance companies are getting a host of benefits. The GOP revisions of Obamacare sees to it that insurers that had complained of having to cover the health plans of ‘sicker, costlier customers’ can now rest easy.
The first pro of the bill for the insurance companies is that beginning January of this year, people will be required to enroll within shorter periods. This reform was put in action earlier this year when ads for plan sign-ups were canceled, effectively ensuring that insurers have fewer people to deal with because fewer individuals signed up for the healthcare plan. For the insurers, it is money saved, but this means higher premiums and deductibles for ordinary Americans.
The next benefit of the reforms from the HHS to insurance companies is that now, people will be required to pay for all past policies before enrolling in new plans. Insurers can now celebrate because there will be little or no deferred payments leading up to ready revenue on their part.
The HHS has also freed insurers to cover whatever amounts they are comfortable with under the Obamacare Act. For insurers, that translates to ‘we have the latitude to cover less.’
Added to that is that Health Care Secretary Tom Price announced that there would be added special verification requirements before issuing of plans allowing insurers to sift out more people from their ‘need-to-cover’ nets. The HHS also removed the contraception coverage requirement for insurers, freeing them to offer the plan only if so inclined. Eliminating funding for Planned Parenthood will further aid insurance companies in their savings.
Insurers will save a lot of money due to these changes in the original ACA plan. As the insurance companies celebrate their gains, though, twenty million individuals who had received coverage under the ACA are left to wonder if they will still be insured in the coming months.
