By Christopher Jacobs
Last Tuesday’s announcement by UnitedHealthGroup, the nation’s largest health insurer, that it will dramatically scale back participation on Obamacare’s exchanges next year illustrates the law’s inherent flaws. Obamacare isn’t too big to fail, but it is too big, and it is failing; more bailouts will not solve the problem.
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Even as the remaining Republican presidential candidates put forward their specific ideas for a conservative alternative to Obamacare, they should immediately declare—as health insurers prepare their bids for the 2017 plan year—that they will halt the tide of taxpayer funds the Obama administration continues to shovel insurers’ way.
With enrollment in exchanges dramatically below initial projections, and enrollees sicker than average, those insurers face mounting Obamacare losses. In 2014, insurers lost a collective $4 billion selling individual health insurance, and likely lost a similar amount last year. UnitedHealthCare said it would scale back its Obamacare involvement after losing more than $1.1 billion in the individual insurance market the past two years.