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Rep: Obama-Care Creating Insurance Monopolies

From the Daily Caller:

Congresswoman: Obamacare creating health insurance monopolies

By Patrick Howley | September 26, 2013

Rep. Renee Ellmers raised awareness of a new problem with Obamacare’s implementation: the creation of private-sector health insurance monopolies that will limit Americans’ provider choices.

The major health insurance company Blue Cross Blue Shield, which is closely coordinating with the White House on Obamacare implementation, will enjoy perhaps the greatest monopoly of all, the North Carolina Republican said in a statement.

“Although seven insurance companies currently operate in North Carolina, under the new Obamacare exchanges, those options will dwindle down to one in the majority of counties,” Ellmers said Thursday following the disclosure of figures by federal health officials showing that more than 60 percent of North Carolina counties will have only one insurance provider option under Obamacare: Blue Cross Blue Shield.

“The whole point of an online marketplace was to provide options, so North Carolinians could go online, compare prices, and choose plans from different companies. That is how competition is supposed to work!,” Ellmers said.

Beginning October 1 under Obamacare, Blue Cross Blue Shield will be the only health insurance provider serving the entire state of North Carolina in the new Obamacare exchanges, serving all 100 of the state’s counties. Its competitor Coventry Health Care, which is owned by Aetna, will only reach 39 counties.

That leaves 61 counties, or 61 percent of all the state’s counties, in a Blue Cross Blue Shield-only zone.

The battle between Blue Cross and Aetna is waging across the country, and Blue Cross is winning.

Aetna has opted not to participate in Obamacare exchanges in numerous states including New York, Connecticut, Ohio, Maryland, Tennessee, and Texas…

At least five Blue Cross Blue Shield executives joined President Obama for a closed White House conference in April on Obamacare implementation, accounting for approximately half of the executives present. No Aetna executives were at the meeting.

That was probably just a coincidence. The Obama administration would never allow such crony capitalism to occur in the health insurance market.

Blue Cross Blue Shield plans are even engaging in community organizing efforts in Louisiana, where the company is leading the state’s education campaign about enrollment in the unpopular health care exchanges…

If they are ‘community organizing’ they must be wonderful.

This article was posted by Steve on Friday, September 27th, 2013. Comments are currently closed.

4 Responses to “Rep: Obama-Care Creating Insurance Monopolies”

  1. Noyzmakr says:

    That’s been a big story in the state for about three weeks. Not only can we not buy ins. accross state lines, now we only have one choice in the state. BCBS has been a fixture in NC my entire life, but there was always competition to keep them in line. They have always been the most expensive. Now, with no competition, prices will skyrocket.

  2. untrainable says:

    Well, at least Obamacare has had one positive effect. It will eliminate the need for what has been legal collusion and price fixing within the insurance industry. No need to fix prices when you’re the only one selling the product. Not to mention the fact that now you are required, by virtue of your birthplace, to buy insurance whether you want it or not. Insta-wealth for those insurers who play along… Guaranteed by da Gubamint.

    The 4 horsemen are saddling up, Pigs and Donkeys are taxiing on the runway waiting for flight clearance, and parachute pants coming back in style. Everything you thought could never happen is happening. Elections have blah blah blah…

  3. GetBackJack says:

    Jokes on them. When this Idiot-based debacle crashes and burns then Congress with thro up their John McCain hands and declare there’s nothing for it but to go full Socialist Nationalized Medicine.

    Which will mean -zero- insurance companies.

  4. yadayada says:

    blue cross/shield has been playing games like this for decades. I’ve worked for the state for over 20 yrs but watched it start in the early 80s. they provide health insurance policies for state employees.
    1) first lobby state legislature to create regulations where only companies who have a headquarters in Idaho can bid for state contracts.
    2) create several subsidiary companies and put a district or regional “headquarters” office in the state – blue cross of idaho, and blue shield of idaho, or regence of idaho, or regence blue shield, what-have-you (state law says a minimum of 3 companies must bid for a large contract).
    3) subsidiaries bid against each other and one would always undercut every other bidder.
    4) get a 5 yr contract.
    5) in 2 yrs. there is a merger between two subsidiaries and a rate increase to make up for the underbid.
    6) buy heavy duty rakes at wal mart to rake in gubmint windfall
    happens every time my department’s contract runs out.

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