January 23, 2014

Administration fears part of Obamacare so flawed, it could bankrupt insurance companies

Well, the Administration has finally admitted it fears part of health care system so flawed it could bankrupt insurance companies, Jim Angle reports:

To justify a no-bid contract with Accenture after firing CGI as the lead contractor, the administration released documents from the Department of Health and Human Services and the Center for Medicare and Medicaid Services that offered a rare glimpse of its worst fears, saying the problems with the website puts "the entire health insurance industry at risk" … "potentially leading to their default and disrupting continued services and coverage to consumers."

Then it went even further, saying if the problems were not fixed by mid-March, "they will result in financial harm to the government."

It even added that without the fixes "the entire health care reform program is jeopardized."
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But the back end still hasn't been built, so insurers are dealing with massive confusion, missing information on who's signed up and what subsidies they get.
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The administration emphasizes that fixing the site by mid-March is urgent. Otherwise the system could descend into chaos and threaten the future of ObamaCare.

Today, Moody's slashes outlook on insurers, cites Obamacare 'uncertainty

Credit ratings firm Moody's Investors Service on Thursday lowered its outlook for health insurers to "negative" from "stable," citing "uncertainty" swirling around the rollout of President Obama's health care law.

In a new report, the agency said that the outlook for insurance companies is no longer clear because the law's insurance exchanges haven't been attracting enough younger individuals. In addition, Moody's analysts were concerned that the Obama administration has been changing regulations after insurers had already set prices for the year.
Posted by Jill Fallon at January 23, 2014 2:28 PM | Permalink