Humana Warns Of "Adverse Obamacare Enrollment Mix"

Tyler Durden's picture


Submitted by Michael Krieger of Liberty Blitzkrieg blog,

Thought the incredibly unpopular Obamacare health plan (the most epic disaster story was the woman who was touted as a success and then later kicked off her plan) had put most of its problems behind it? Think again. Yesterday, after the stock market close, health insurer Humana warned that the “risk mix” of those who have signed up for the program will be “more adverse than previously expected.”

In plain english what this means is that only old and sick people are signing up, while younger generations with piles of student debt, a couch in their parents’ basements and no jobs decide to ride things out uninsured.

Honestly, I can’t blame them, as I just received my own 12% rate hike the other day. Happy New Year to you too Barry.

From Investor’s Business Daily:

Humana said the “risk mix” of its ObamaCare exchange members will be “more adverse than previously expected,” the latest evidence that the health reform is attracting older, sicker Americans than originally projected.


The health insurer, in an SEC filing late Thursday, cited the Obama administration’s 11th hour decision to let people stay on plans that had been cancelled due to ObamaCare regulations. The White House was reacting to political anger of President Obama’s “if you like your plan, you can keep it” vow.


Humana made no mention of the administration’s late December decision to let people with cancelled plans avoid the individual mandate tax penalty in 2014. Those who choose to forgo insurance presumably will be younger and healthier.


The White House has refused to give any information regarding the age or health status of people signing up on the federal site. Data from some state-run exchanges have suggested fewer “young invincibles” are signing up.


The ObamaCare exchanges need young, healthy people to make up a significant share of enrollees. If not, the plans may be more costly for insurers, potentially creating a premium rate death spiral. But the Obama administration plans to use “risk-corridor” and “risk-adjustment” payments to offset much of insurance companies’ unexpectedly high costs. Such taxpayer bailouts may keep insurers from hiking premiums in 2015 or simply bowing out of the exchanges.

“Premium rate death death spiral.” Call me crazy, but I’m not itching to find out what that means…

Full article here.

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Sat, 01/11/2014 - 12:07 | 4322642 Deo vindice
Deo vindice's picture

I wish people would quit thinking this is a failure. This is "failure by design" to get what they really want - single payer rate. The government will blame these failures on everyone but themselves and then bring in the real disaster.

Sat, 01/11/2014 - 12:15 | 4322658 Mrs. Cog
Mrs. Cog's picture

This is "failure by design" to get what they really want - single payer rate.

Or perhaps what they really want is for the next generation to hand over their consent to be ruled by the few while people are distracted as they bicker about the tab.

Sat, 01/11/2014 - 12:22 | 4322668 BaBaBouy
BaBaBouy's picture

ANY Fecking Idiot Analyst Would Have Seen This Coming A MILE AWAY!!!

AND Please Stop This Bullshit Wording "risk mix”.


Sat, 01/11/2014 - 12:25 | 4322680 Ignatius
Ignatius's picture

The 'effect' of this fact is that people will forgo enrollment and pay the TAX.  This in turn supports the dollar via increased tax revenues.  No fools, these guys.  Bastards, yes.  Fools, no.

Sat, 01/11/2014 - 12:29 | 4322700 max2205
max2205's picture

We need to get rid of all hospitals and just have ERs and ambulances. ...give out asprin....just see how many come back


Fixed it!

Sat, 01/11/2014 - 12:38 | 4322715 Soul Glow
Soul Glow's picture

These is brilliant.  Leave preventative care to chiropracters, physical therapists, dieticians, and acupuncturists.  People can get rid of their health problems this way and then we wouldn't need hospitals except to perform surgery.

Sat, 01/11/2014 - 13:12 | 4322822 MontgomeryScott
MontgomeryScott's picture

Don't you understand yet? This whole thing has NOTHING to do with treating sick people.

Humana Warns Of "Adverse Obamacare Enrollment Mix"

This could be corrected to read:

Humana Warns Of The Imminent Need For A Bailout Of The Insurance 'Industry'



Sat, 01/11/2014 - 13:36 | 4322898 Surly Bear
Surly Bear's picture

I am fine with single payor as long as I am not the ONLY one paying....

Sat, 01/11/2014 - 14:28 | 4323021 macholatte
macholatte's picture



Don't you understand yet? This whole thing has NOTHING to do with treating sick people.


And let's not forget about the death panels.  The fastest way to fix social security is to kill off the beneficiaries ..... by design.

Sat, 01/11/2014 - 16:16 | 4323239 wintermute
wintermute's picture

So Obummercare is attracting only older and sicker people when it is meant to be compulsory.  Pathetic


Sat, 01/11/2014 - 18:28 | 4323548 zaphod
zaphod's picture

Obama is going to go after those millenials hard. There may not be a major war requiring compulsory military service today, but this is a war for the new liberal america which requires compulsory participation by all.

It is what the millenials voted for after all.

Sat, 01/11/2014 - 20:13 | 4323803 NihilistZero
NihilistZero's picture

Death panels were coming obamacare or no obamacare. To many ways to keep a dying meat body from giving up the ghost now a days.  No way everybody was going to get cadillac service to the grave.  My prediction is taxpayers bailout insurers  losses until 2016 when a Republican plays the bad guy and kills the bailout (Rand Paul???) which in turn kills the insurers and then we go single payer.  

Sat, 01/11/2014 - 23:15 | 4324120 cynicalskeptic
cynicalskeptic's picture

If you have good insurance hospitals PROLONG your death and rack up hundreds of thousands in charges.   Saw this first hand with my mother where they blatantly ignored her request NOT to be put on a ventilator - among other requests.  She was dying, accepted that and simply wanted things over with.  Intead the hospital kept her alive for at least two weeks longer than they should have - and collected $200,000 more in the process.  Made her last days miserable for NO reason.

If you don't have insurance..... well.... you get to die faster.


Just because medicine CAN do something doesn't mean that it SHOULD.   I saw 70 year old 350lb people in double wide wheelchairs who had double knee replacements - to no point since they would not/COULD not do the needed therapy.  They were NEVER going to leave that wheelchair but because the gov paid for the surgery and therapy (even if they refused to do the therapy) it got done.   If you're 85 and will be dead withing the year who CARES if you need a hip replacement (to be paid for by the taxpayer).   Makes more sense to pay for basic care for kids to keep them healthy instead of paying for the mistakes old people made and continue to make.   Someone who smoked all their life and weighs 300 lbs gets their Oxygen and Rascal scooter paid for by the gov but someone who's worked construction all their life and NEEDS a knee replacement at 50 pays for it themself (if they can afford it).

Sun, 01/12/2014 - 11:12 | 4324574 RSDallas
RSDallas's picture

Mont, I do agree that all insurance companies have to be operating on fumes after 5 years of zero bound interest rates.  Insurance and pension fund collapse in 2014 maybe 2015.  I believe it was auto or home insurance in Texas that a few insurance companies are trying to get approval to increase premiums by 15%!  Obammy and the Fed are making the gravest of mistakes EVER in history.  

Sat, 01/11/2014 - 12:32 | 4322705 VD
VD's picture

nope, more people will not pay any taxes whatsoever as they segue to shadow econ where plenty of employers will be more than willing to pay under table and yet single payer sickcare will still go through...we r fukd.

Sat, 01/11/2014 - 12:48 | 4322751 Ignatius
Ignatius's picture

I'm speaking of those who have above-board jobs and would rather not enlist the ire of the IRS.

Sat, 01/11/2014 - 20:15 | 4323806 NihilistZero
NihilistZero's picture

And everyone is aware their is no extra penalty for not paying the no insurance tax right?   The most they can do is withhold your return.   It says so right in the law.

Sat, 01/11/2014 - 12:34 | 4322687 Headbanger
Headbanger's picture

But they had to pass it to see what was in it.. Fucking retarded idiots!

And the conspiracy theorists might well be right that Obamacare was intentionally made so FUBAR in order to pass the no health insurance penalty tax that leads to a government single payer system.

Moar than that,  it means there will be a much expanded Health and Human Services Dept or even a new health care dept which will then mandate which procedures anyone (but the elites) can get so the USSA can kill off which ever group they want.

Get injured in a car accident while driving oveer the DUI limit??  No health care for you!

Obese?  No health care for you!

Smoker?  No health care for you!

Convicted felon? No health care for you!

See how it can work?

Sat, 01/11/2014 - 15:10 | 4323110 vulcanraven
vulcanraven's picture


Visit Zerohedge?


No healthcare for you!

Sun, 01/12/2014 - 13:00 | 4324721 depression
depression's picture


Illegal Alien ?


Yes Free Healthcare for You !

Sat, 01/11/2014 - 20:19 | 4323817 NihilistZero
NihilistZero's picture

Outside of the Felon part I wouldn't mind the others experiencing the consequences of their actions.  For example the DUI guy can get the care, but he'd gotta pay for it just as he does now.  Government coercion is with us whether we like it or not unfortunately.  This example wouldn't keep me up at night.

Sat, 01/11/2014 - 12:34 | 4322697 remain calm
remain calm's picture

The real corruption is about to happen. The government will pay off the health care insurers  losses to placate them. Although, Obama wants it to fail he does not want it to implode this soon. We voted for these thieves and we are about to get royally screwed and get what we voted for.

Sat, 01/11/2014 - 12:36 | 4322717 VD
VD's picture

i didn't vote for any of this shit on either side of the imaginary party bullshit mendacity...

Sat, 01/11/2014 - 14:25 | 4323013 new game
new game's picture

i'm thinking the marketplace of money (ten yr treas) might vote fubar, and the dolla be toast and all this is moot. then health care will be survival of fit...

and this could be happening soon. watching that ten yr rate and manipulations to keep a lid on it at 3.

really this goverment is growing like americans' waistlines. everything is spinning out of control...

Sun, 01/12/2014 - 02:02 | 4324269 Freddie
Freddie's picture

Do you watch TV and Hollywods's crap? If so then you voted for it and support it.  Everytime you turn on you f***ing TV - you vote for it.

Sat, 01/11/2014 - 12:29 | 4322698 Deacon Frost
Deacon Frost's picture

The health care industry is exempt from the Robinson-Patman Act, AKA 5 USC Section 13. The doctors or hospitals can bill at whatever price they deem and do not have to disclose their fees up front. They are exempt because the health care industry lobbied Congress for the exemption. Until this is repealed, there will be no solution. Health care costs will continue to outstrip inflation and premiums will continue to skyrocket.

Sat, 01/11/2014 - 12:49 | 4322754 VD
VD's picture

thank you for that Deacon.

Sat, 01/11/2014 - 13:12 | 4322821 Colonel Klink
Colonel Klink's picture

Ding ding ding, there's the cause of the problem.  Exemption from the normal competitive marketplace for services, via our Lords and Masters in CONgress.

Sat, 01/11/2014 - 13:39 | 4322906 GotNuttin'todo
GotNuttin'todo's picture

Wait up there Deacon. You are partly right. Docs and hospitals can CHARGE whatever they want. But they only get PAID what the insurance companies want to pay, and that is based on contracts.  I can charge a patient $1M bucks but if the insurance company reimburses me $1 then that is what I get. 30 years ago, 80% of doctors who graduated went into private practice; today it is 6%. Why is that? Because new physicians cannot afford to go into practice and are not educated enough, nor emotionally equipped enough, to deal with the monopolistic insurance companies.  So all the new grads go to multispecialty clinics or to the hospitals to work - they don't go out on their own, and that totally destoys the free market place (not that there is a free market anywhere anymore).  The whole system is broken on many more levels than just the Robinson-Patman Act.

Sat, 01/11/2014 - 13:51 | 4322927 carlnpa
carlnpa's picture


They can charge what they want until your deductible is satisfied or if you are self insured.

$10,000.00 bill for aspirin from the hospital without insurance - you gotta pay.

And this is exactly what is fucking individuals into the ground under this system.

Sat, 01/11/2014 - 14:22 | 4323004 thadoctrizin
thadoctrizin's picture

Wrong. Has nothing to do with your deductible. If it is a covered service under your health plan and the doctor is contracted with your insurer, the doctor MUST accept the fee established by your insurer. Say I'm a doctor and I bill $100 for a service, my contract says I can only collect $5. You have a $10000 deductible... I send you a bill for $5. Ins co pays nothing, you get a reduced rate. Essentially you pay a monthly premium for a middle man to twist the doctors arms. Health insurance has become a mechanism for central control of prices....that's it. Obviously if you have a health catastrophe that costs more than 10 grand the insurer will reach in their pocket and start paying...but how many 20 year olds are willing to pay $200/month for that?

One more thing. I contract with 50 different health plans that have 50 different contracted rates for the same service...and you want me to post my fees... Um my fees are irrelevant, and it is damn near impossible for me to keep track of all 50 health plan fee schedules. Easier by far to just send the bill to your insurer and let the insurer tell me what to bill you the patient.

Sat, 01/11/2014 - 19:07 | 4323649 Deacon Frost
Deacon Frost's picture

All good points, but why then is the medical industry the only ones Exempt?

Sat, 01/11/2014 - 13:08 | 4322814 OC Sure
OC Sure's picture

Yes. Despotism succeeds when the Constitution is swept aside and ignored. With regards to any Federal government function, agency, or attempted usurpation, the discussion should always revolve around this question: Does the proposal pass the litmus test of the 10th Amendment? When this question goes unanswered, let alone even debated, proponents of despotism will always win.

Here is the law that overrules and makes invalid any federal healthcare system no matter what it is named:

"The powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the states respectively, or to the people."

Sat, 01/11/2014 - 13:25 | 4322856 TBT or not TBT
TBT or not TBT's picture

Tell that to chief justice Roberts.

Sat, 01/11/2014 - 13:28 | 4322865 OC Sure
OC Sure's picture

It can go in the petition for a redress of grievances.

(TBT done for now, TLT until time to TBT again.)

Sat, 01/11/2014 - 12:20 | 4322660 BaBaBouy
BaBaBouy's picture


Sat, 01/11/2014 - 12:08 | 4322645 Unpopular Truth
Unpopular Truth's picture

I am appreciating my health a lot more these days!

Sat, 01/11/2014 - 12:10 | 4322649 Deo vindice
Deo vindice's picture

Health is one of those gifts from the Creator we only think about when we lose it. Having been around some serious sicknesses in life, I'm thankful for mine everyday.

Sat, 01/11/2014 - 12:25 | 4322685 john39
john39's picture

people have been brainwashed think that disease is random.  In the vast majority of cases, it is not random at all.  Your body is your responsibility.  Delegate that responsibility to the system, and chronic disease is all but assured.

Sat, 01/11/2014 - 12:30 | 4322701 ElvisDog
ElvisDog's picture

No shit. As you get older (40 and above), health is all about daily routine maintenance. You have to be willing to go through hours of maintenance every day (dental care, preparing healthy food, exercise, taking supplements, getting enough sleep, etc.) When I'm out walking around, I can tell just by looking at people who is putting in the maintenance time and who is not (most are not).

Sat, 01/11/2014 - 12:47 | 4322747 Rainman
Rainman's picture

Noted vegetarian author and health nut drops dead while jogging.

Sat, 01/11/2014 - 12:57 | 4322778 Colonel Klink
Colonel Klink's picture

I think he went unidentified for the week while the vegan army tries to get their story straight why he dropped dead from a heart attack.

Sat, 01/11/2014 - 13:28 | 4322872 TBT or not TBT
TBT or not TBT's picture

Lots of carbs and toxic vegetable oils packed with pro-inflammatory omega-6 PUFAs.

Sat, 01/11/2014 - 13:50 | 4322923 Colonel Klink
Colonel Klink's picture

Unpossible, everything from plants is good for us!

/do I really need the tag?

Sat, 01/11/2014 - 12:58 | 4322779 NoDebt
NoDebt's picture

They often do.  Look up Jim Fixx.

Sat, 01/11/2014 - 13:40 | 4322909 Tijuana Donkey Show
Tijuana Donkey Show's picture

He was 68, and people have inherited issues. How long was he vegan, and not all heart attacks are block age based.

Sat, 01/11/2014 - 13:22 | 4322849 FredFlintstone
FredFlintstone's picture

"supplements"? sheesh!

Sat, 01/11/2014 - 14:39 | 4323046 ElvisDog
ElvisDog's picture

By "supplements" I meant things like Vitamin D. When you live in Seattle, you will be vitamin-D deficient.

Sat, 01/11/2014 - 17:11 | 4323353 FredFlintstone
FredFlintstone's picture

Interesting, thanks.

Sat, 01/11/2014 - 19:14 | 4323672 Miffed Microbio...
Miffed Microbiologist's picture

What! Take vit D and rob the Cancer industry of its revenue stream? I think there is a terrorist in our midst.

100s of studies have shown the benefits of vitamin D supplementation. Reduction of cancer rates of those who have adequate levels is just one benefit. I take 5000IU daily to keep my level above 50. Without supplementation I run around 33 even with plenty of sun exposure. Research has shown vitamin K2 is needed when you take D so I take that as well.

Of course, eating a proper diet is far more important than popping pills. It really cracks me up when people live on junk and think popping a Centrum is going to counteract all that crap. Considering synthetic vitamins are not even utilized by the body the joke is on them when it just goes down the toilet.


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