Last Obamacare exchange in one Iowa county set to fold
Yet another of the health-insurance exchanges set up in the wake of Obamacare’s passage will likely fold in the days ahead as it struggles to meet its bottom line.
The Des Moines Register reports that after the exit of Aetna and Wellmark Blue Cross & Blue Shield from Iowa’s exchange, the only other insurer in 94 of Iowa’s 99 counties is plotting its exit as well.
You might think the exit of all competitors would be a boon for the last remaining insurer, but this is not the case, thanks to two of the important Obamacare rules that are a constant subject of discussion: “Community rating,” which requires that everyone of the same age be offered the same price for coverage, and “guaranteed issue,” which requires that all applicants be accepted, regardless of pre-existing conditions.
Without the ability to price for health risk, and with only limited ability to charge more for age, insurers find themselves unable to make money. They could respond by raising premiums even further, but this risks making the problem worse by scaring away the healthiest customers.
Obamacare continues to shrivel as again and again it proves to be an unsustainable system and one that hurts instead of helps Americans. Click here to help Tea Party Patriots encourage our lawmakers to roll back Obamacare entirely!