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August 24, 2016

ObamaCare Near Collapse in TN

Huge rate increases coming in 2017, and the exchange isn’t doing so well.

The insurance regulator for the state of Tennessee warned that the state’s ObamaCare exchanges are “very near collapse.” As health care costs only continue to increase, some insurance companies who have remained on the federal exchange are beginning to plan exit strategies. For example, Blue Cross Blue Shield of Tennessee (BCBST) estimated that by the end of 2016 it will have lost upwards of $500 million since entering the exchange three years ago. In light of the rising health care costs and the threat of losing the three remaining insurance companies currently operating within the federal exchange in Tennessee, the state government has given the green light for these remaining companies to increase their rates for individual plans — up to 44.3% with Humana, 46.3% for Cigna, and a shocking 62% in the case of BCBST.

Tennessee Senator Lamar Alexander, chairman of the Senate health committee, said that the large increase in rates is proof that ObamaCare is not working. He questioned, “How can anyone continue to defend this law while they watch it wreak havoc on family budgets, stealing money hardworking Tennesseans had set aside to buy a home or send their child to college but will now have to spend on their skyrocketing premiums?” But it’s not only those ObamaCare exchange plans which will see rate increases — it’s estimated that those off-marketplace plans will also see double-digit price increases. No one is free from the ObamaCare monster. Not even a model state like Tennessee.

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