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Guy Benson: Obamacare Updates: Tale of Fail from Coast to Coast May 21, 2015

By Guy Benson

Town Hall, May 21, 2015

It’s time now for your monthly reminder that Obamacare neither “working in the real world,” “proving its critics wrong,” nor “blowing away expectations:”

Colorado (higher taxes): “The Connect for Health Colorado board of directors voted unanimously Thursday to raise the fees it charges on health insurance policies to bolster its finances as federal grants run out later this year. The state health insurance exchange raised the fee on 2016 plans purchased through its marketplace from the current 1.4 percent of premiums to 3.5 percent, the same rate charged on the federal exchange…Although insurance carriers pay the fees to the exchange, they acknowledge fees are passed on to consumers in one form or another…The fee increases are projected to help bring revenues to about $40 million in fiscal year 2015-16. It would cover operational expenses, but not capital costs, such as improving the computer system…”

Kentucky (hurting hospitals):  “While Kentucky has gained national prominence as the only Southern state to fully embrace Obamacare, its hospitals say the law has left them facing billions of dollars in cuts and forced them to lay off staff, shut down services and worry for their financial health and, in some cases, survival. The Kentucky Hospital Association outlined its concerns in a report released Friday called ‘Code Blue,’ saying payment cuts to hospitals are expected to reach nearly $7 billion through 2024. ‘Kentucky hospitals will lose more money under the Affordable Care Act than they gain in revenue from expanded coverage,’ it said, experiencing a net loss of $1 billion by 2020…Hospitals are suffering a net loss, officials said, partly because about three-quarters of newly-insured Kentuckians signed up for Medicaid, which reimburses hospitals less than it costs to treat patients.”

Continued on Town Hall