Tuesday, March 04, 2014

More bad news for Kentucky ObamaCare

A left-leaning political blog with unusual access to Kentucky's ObamaCare enrollment statistics reports that 75% of health policies sold on the Kentucky health "exchange" have come from the federally funded "public option" plan called Kentucky Health Cooperative. This is bad because under-pricing of these policies and poor sales overall will devastate policyholders next year when reality is more fully priced into the market.

By all accounts, Kentucky ObamaCare's paying customers are older and sicker than necessary to maintain much pricing stability for policyholders beyond the first year of the health scheme. Competing firms Anthem and Humana hoped to make up for being required to cover all applicants by signing up large numbers of them. They have failed spectacularly. The Cooperative has succeeded so far on the strength of massive federal funding and on setting its premiums far lower than its competitors. It's ability to continue on this path depends heavily on the federal government's willingness and ability to bail them out of losses due to their mis-pricing.

Kentucky's political class is starting to admit they can't rely on Gov. Beshear's illegal implementation of ObamaCare to insulate them from blame in this mess. We really can't shut down the state-run program fast enough and default to the federal exchange, which faces multiple federal court challenges. Kentucky's ObamaCare efforts remain under the cloud of a state court challenge. All these things are slowly bringing us closer to defeating ObamaCare.