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Obamacare Impact: Another Insurer Leaves California Market
Posted By Chris Jacobs On July 2, 2013 @ 1:47 pm In Obamacare | Comments Disabled
The Los Angeles Times reports  this morning on another disturbing Obamacare-related development in California:
The nation’s largest health insurer, UnitedHealth Group Inc., is leaving California’s individual health insurance market, the second major company to exit in advance of major changes under [Obamacare].
Due to UnitedHealth’s decision, thousands of individuals will be forced to find a new health insurance option. However, those options keep dwindling; as the article notes, today’s development comes just a few weeks after Aetna announced  it was also pulling out of the California market, leaving nearly 50,000 California residents searching for new health coverage.
Even advocates of Obamacare could not hide their dismay about today’s development. As the Times article notes:
The departure of another big-name insurer raised concerns about the effect of reduced competition on California consumers. “I don’t think this is a good result for consumers,” said California Insurance Commissioner Dave Jones. “It means less choice, less competition and even more consolidation of the individual market with three big carriers.”
However, as The Wall Street Journal reported last month , these two California announcements could represent merely the leading edge of bad news for policyholders: “Insurance-industry experts say similar moves by other carriers in other states may emerge in coming months, as companies with limited market share decide to avoid the uncertainty tied to [Obamacare’s] changes.”
Recall that in 2008, then-Senator Obama promised  that “for those who have insurance now, nothing will change under the Obama plan—except that you will pay less.” Recall too that the Obama Administration intends to use California  as “proof that [Obamacare] is working.” Obamacare is working, all right—but not exactly as promised. A month’s worth of stories about skyrocketing premiums  and thousands losing their health insurance demonstrates how Obamacare’s supposed “success story” is shaping up to be a significant failure.
Article printed from The Foundry: Conservative Policy News from The Heritage Foundation: http://blog.heritage.org
URL to article: http://blog.heritage.org/2013/07/02/obamacare-impact-another-insurer-leaves-california-market/
URLs in this post:
 Image: http://blog.heritage.org/wp-content/uploads/pharmacy.jpg
 reports: http://www.latimes.com/business/la-fi-unitedhealth-insure-calif-20130702,0,4370321.story
 announced: http://online.wsj.com/article/SB10001424127887323734304578546144234962424.html
 promised: http://scr.bi/ix0cQQ
 intends to use California: http://www.washingtonpost.com/blogs/wonkblog/wp/2013/06/06/california-is-the-white-houses-proof-that-obamacare-is-working/
 skyrocketing premiums: http://blog.heritage.org/2013/05/30/obamacare-krugmans-california-dreamin/
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