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Wednesday, December 02, 2015

Cutting a deal with Democrats costs company $500,000,000


Lured by promises of tax subsidies (welfare) and a new influx of customers, United Healthcare decided to sign up for Obamacare.

Twas a "Yuge" Mistake, as the next president might call it.

From the Hill:
The CEO of UnitedHealthCare on Tuesday said he regretted the decision to enter the ObamaCare marketplace last year, which the company says has resulted in millions of dollars in losses.
"It was for us a bad decision," UnitedHealth CEO Stephen Hemsley said at an investors meeting in New York, according to Bloomberg Business.
UnitedHealth, the countrys largest insurer, announced last month that it would no longer advertise its ObamaCare plans over the next year and may pull out completely in 2016, a move that sent shockwaves across the healthcare sector.
Hemsleys remarks double down on his earlier warning that the ObamaCare exchanges remain weaker than expected after two years and that it will take far longer for insurers to profit from the millions of new enrollees.
The company had already eyed ObamaCares federal marketplace cautiously since it launched in 2013. UnitedHealth only began selling plans on the exchanges last year.
Now, UnitedHealth officials have said that move will result in a half-billion dollars in losses over two years.
Hemsley said it was smart to sit out of the exchanges for the first year, but that the company should have held out another year.
"In retrospect, we should have stayed out longer," he said, adding that he believes the marketplace will take more than one season or two to develop.
"We did not believe it would form this slowly, be this porous, or become this severe," he said.
I could have told him this was a "Yuge" FUBAR. The company board should fire him.

5 comments:

  1. Around New York there is a strong drive towards the separation of quality and individual availability of physicans.Most Doctors are becoming employees of hospitals and the corporations that own them. They work less, get paid less, care less. The better ones are avoiding insurance as the primary source of income so they work more, get paid more, learn more, care more. Obamacare, Medicare, Medicaid and the VA, are all beaurocratic monuments to mediocrity and the calcification of moral concern the goes with it. United Health will ultimately be no different. In the UK a strike by physicians for the first time in history is on the horizon and the government is counting on the army to ameliorate it's effects. Maybe someday here too.

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  2. Remember when they were trying to pass Canklescare? The insurance companies were against it and sponsored those Harry and Louise ads. This time around, they bribed the insurance companies to get in on the scam. Turns out the insurance companies are getting screwed. They made the mistake of listening to Dimocrats. When you lie down with dogs expect to get up with fleas.

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    Replies
    1. "You f******d up! You trusted us." Truer words, and all that.

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  3. So, Don, UnitedHealthCare is NOT one of the self-serving health insurance companies that helped to write the so-called Affordable Care Act and then did so much to ensure passage of the law (in the dark of night, we should all remember)? Just asking, because if it was complicit in that conspiracy, then my response to their CEO is, "No soup for you!"

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  4. screw united and their billionaire execs.
    they belong in jail
    thanks for lobbying for obamacare, f'traitors
    hope they drink tap water for a year.
    that's the worst they can expect in a corporatist world

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