Our View

Our View

Insurers making plenty from ‘a_ordable’ health care

Wait just a minute, weren’t we led to believe that Obamacare would be affordable, that we could keep our doctor of choice and we’d be healthier?

Weren’t we also told Arkansas’ government health care plan, that once was called the “Private Option” and now dubbed “Arkansas Works”, is “JUST WHAT THE DOCTOR ORDERED”?

Remember folks, Arkansas has a total population of just under 3 million inhabitants with over 260,000 of them dependent upon this mostly free or government subsidized health care plan.

If our memory serves us correctly, weren’t we all assured by liberal proponents of this government subsidy, paid for by the taxpayers, that sure this is the best and only way to keep our hospitals from closing and assuring us “just not to worry any more”?

Well, the reality in this not only is it becoming unaffordable for many Arkansans who don’t qualify for free or government subsidized coverage, we now are told that Arkansas’ largest health insurer is wanting a 14.7 percent increase in the cost of plans that cover those benefiting from free health care.

Arkansas Blue Cross and Blue Shield said it collected $861 million in premiums last year from those forced to pay for coverage and it paid out $821 million in claims.

Also, QualChoice Health Insurance and St. Louisbased Centene Corp, are also wanting to increase premiums: an average of more than 23 percent for QualChoice and less than 10 percent for Centene.

Those affected by these proposed increases will be the ones who buy coverage on their own, as well as people who receive coverage in such plans under the private option, or now Arkansas Works.

And, get this, an increase in rates will affect the premiums the Medicaid program pays for private-option enrollees next year, when we, the taxpayers, will be responsible for 5 percent of the overall cost, which as we have already pointed out will cost millions upon millions of tax dollars.

Let us also point out that in 2014, Blue Cross and Blue Shield requested an average increase of 8.5 percent for its individual market plans, but was approved for a 2 percent increase.

It was pretty much predicted that Gov. Asa Hutchinson isn’t too pleased with the announcement and neither is Arkansas Insurance Commissioner Allen Kerr who said neither he or the governor believe there is substantive justification for the increases.

Both said they expect to take action to deny the requested rate increases until there is sufficient justification to properly consider any rate increase.

One thing more that is important for taxpayers to realize is that a request for an extension of the federal weaver, the state estimated that the average monthly per-enrollee payment to insurance companies next year will be $525.48, a 4.7 percent increase from this year’s average payment of $501.89.

Including other services provided to these individuals receiving free health care, the state estimated the total per-enrollee cost to be $528.97 per month.

We’re told the payments the state will make to insurance companies to total about $1.6 BILLION during the year. The point is, that let’s not be led to believe health care is cheap, nor is it affordable for everyone, especially those playing a part in paying this enormous bill, that being the taxpayers.