A healthcare collapse storm is on the horizon and it’s going to be ugly.
Bad news for folks in Iowa who get coverage in the individual marketplace. As Iowans probably already know, two of the three largest individual plan providers recently left Iowa, a move that left tens of thousands of Americans without coverage. The move left only one company providing coverage.
Indeed, Medica, a company that currently covers 14,000 Iowans at an annual loss of at least $1.5 million, is the last provider standing. Medica was faced with a choice. Take on tens of thousands of Iowans who lost insurance when Aetna and Blue Cross Blue Shield left or close up shop and leave the state.
Considering they already lose nearly $2,000,000 a year on the 14,000 they currently cover, adding tens of thousands more was simply not a sustainable option.
So closing shop is now the likely outcome. The company just released a statement saying “Without swift action by the state or Congress to provide stability to Iowa’s individual insurance market, Medica will not be able to serve the citizens of Iowa in the manner and breadth that we do today. We are examining the potential of limited offerings, but our ability to stay in the Iowa insurance market in any capacity is in question at this point.”
Why anyone thought saddling insurance providers with a mandate to provide “coverage” for pre-existing conditions and nonsense like maternity services for men was a financially viable scenario is beyond me. It’s an absurd plan and clearly just doesn’t work.
In the past all of this madness could be blamed squarely on Democrats. But now that Republicans refuse to follow through with their promise to repeal Obamacare, these kinds of collapses lay on all of congress, regardless of party.
They win, we all lose.