Thursday, July 31, 2014

I see an IRS proctological exam in Aetna CEO Mark Bertolini's future

It's just a hunch after stumbling across this segment on CNBC:

Many Americans can't afford Obamacare: Aetna CEO

The Affordable Care Act—also known as Obamacare—is "not an affordable product" for many people and it does not fix the underlying problems causing high health-care costs, Aetna Chairman and CEO Mark Bertolini told CNBC on Wednesday.

"If we're going to fix health care, we've got to get at the delivery of care and the cost of care," Bertolini said in a "Squawk Box" interview. "The ACA does none of that. The only person who's really going to drive that is the consumer and the decisions they make."

"Getting everybody insured should probably be our goal, but you have to have a more affordable system," he added. "We have a 1950[-style] health care system in the Unites States."

..."We have 600,000 ... customers as a result of the Affordable Care Act," Bertolini said. "We do know they are sicker. We know 87 percent are subsidized. We know they are older. So we expect they are going to use more health care."

"We priced this [Obamacare] business at lower margins in the 3 percent to 5 percent range … but we didn't plan or expect earnings as a result of those populations," he explained.

Hopefully Lois Lerner didn't catch this segment, otherwise Bertolini could be in for some very rough times ahead.

Hat tip: BadBlue Money.


Anonymous said...

One of the roots of ObamaCare and the resulting grotesque waste money can be found in the fact that when government can create almost unlimited money out of thin air, money has no value to the officials who have free reign to create as much as they need to fund their Utopian dreams. Single payor health insurance has been one of the main dreams of Utopians for several generations. The hard truth is that when Utopians are in power, nearly infinite fiat money enables nearly infinite government.

Every day more people are coming to the judgment that a carefully organized effort to repair the constitution via the States' power to propose and ratify amendments has less risk to our liberty and prosperity than the present trajectory of the federal government and especially the federal bureaucracy.

The first order of business of an Article V Convention must be to limit government's ability to create and spend near-infinite amounts of money.

-- theBuckWheat

Anonymous said...

"We have a 1950[-style] health care system in the Unites States."
If it was "1950's style" it would be heavily weighted towards fee-for-service.