Wednesday, January 13, 2016

Administrative Fixes Won't Rescue Obamacare's Broken Exchanges

The healthcare sector is digesting an important speech by the man tasked with rescuing Obamacare’s exchanges. Andy Slavitt, formerly of UnitedHealth Group, joined the Administration in June 2014. Last February, he took over the Centers for Medicare & Medicaid Services (CMS).

Yesterday, Mr. Slavitt spoke at the J.P. Morgan health conference in San Francisco, using the opportunity to announce some important new initiatives, including responding to the failure of Obamacare’s exchanges.

Although sugar-coating his diagnosis, Mr. Slavitt clearly knows exchanges are in trouble. Too many old and sick people are signing up; and healthier and higher-earning and people (who do not benefit from tax credits which discount premiums) are staying away or dropping out, despite penalties for doing so.

Mr. Slavitt's suggested reforms are necessary, but far from sufficient, to rescue the exchanges.

Read the entire column at Forbes.

No comments: