Mary: I’m Mary Walden with economist MW, welcoming you to the economic perspective. Today’s program looks at problems with the Affordable Act. Mike, recently a major insurer in North Carolina announced they were examining whether to continue participating in the Affordable Care Act. The Act – also known as Obamacare – was enacted to expand health insurance coverage to millions of households who previously did not have coverage. Why would any insurer decide not to participate?
Mike: Summary Answer
- Some insurers have left
- Reason – some insurers have evaluated that costs associated with ACA are greater than the revenues
- Two issues
- One – ACA had hoped to contain costs – especially by motivating participants who used high cost emergency rooms to use regular doctors
- Some studies show this isn’t happening to the degree expected – and so costs to insurers aren’t being contained as much as thought
- Second – need young healthy individuals to participate so their revenues will help offset the higher costs of older participants
- Some data indicate that signing up 26-35 aged individuals (near young) has not met expectations
- Bottom line – finances will determine if an insurer stays
- I’m MW
Mary: And I’m Mary Walden for the North Carolina Cooperative Extension Service