Medica, the only remaining insurance company offering individual health care plans under Obamacare to Iowans, has called for a steep 57 percent hike for rates amidst fear of losing federal subsidies.
This rate hike is actually a 13 percent increase from the one Medica requested two months ago. Fox News reports:
"In June, Iowa's Medica sent a letter to its customers explaining it was seeking a 43.5 percent rate hike, affecting about 14,000 Iowans. The company spelled out the steep premium increases but offered customers assurances that federal subsidies would shield most them from forking over thousands more a year."
The insurance company is now seeking much higher rates over worries surrounding the failing Affordable Care Act. The company said in a statement:
"We remain hopeful the federal government will fund the cost-sharing reductions, but we are working with the Iowa Insurance Division to help consumers understand the implications of lack of this funding, Geoff Bartsh, Medica vice president of individual and family business, said in a statement. “We regret the disruption this creates for consumers."
President Trump has previously tweeted his frustrations regarding Congress's inability so far to repeal and replace Obamacare, including threatening to end federal tax subsidies for plans offered on the exchange.
It seems though that at least for now, the Trump administration is trying to mitigate the damage until something can be done about health insurance by legislators. According to Fox News:
On Wednesday, the Trump administration announced it would make its August subsidy payments to health insurers. Insurers receive the money under ObamaCare to cover costs related to the law’s requirement to offer plans with reduced deductibles and copays.
Unfortunately for Americans, it looks like Medica is not the only insurance company looking to escape Obamacare's tangle. Other insurance companies like Humana, UnitedHealth Group and Anthem have left the Obamacare marketplace altogether.
This is really bad for consumers, and just displays the further inadequacies of the so-called "Affordable Care Act."
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