Obamacare Claims Another Victim
This time it’s a health insurance start up that was specializing in high-deductible insurance policies that are coupled with health savings account. This is a health insurance option that has been gaining traction with Americans over the last several years, though these type of plans aren’t likely to be allowed under the health care legislation Democrats just pushed through Congress.
But remember, Obamacare wasn’t a government take over of health care.
“Despite a product that was gaining increasing acceptance among companies throughout the Commonwealth, the uncertainties in the regulatory climate coupled with new demands imposed by national healthcare reforms have made it challenging to sustain the level of sales required to remain viable over the long run,” Slabaugh said in the letter.
According to nHealth CEO Paul Kitchen and Paul Nezi, one of the company’s original investors and former board members, regulatory changes the company believes are coming as a result of the legislation will require levels of capital beyond what nHealth’s business model can sustain.
Nezi said nHealth tried to raise additional capital but was unsuccessful.
“People got skittish about writing any more checks,” Nezi said. “Because of that uncertainty, would you invest a few more million dollars of your money in a startup if you don’t know what the rules are going to be?”
That left company with only one choice.
We were told, over and over again, that this health care legislation would increase our access to health insurance and drive down its cost. And yet, how can that be true when it’s driving health coverage choices out of the market? Due to regulatory uncertainty under this legislation (meaning the government has near total control of the market and nobody really knows what they’re going to do) insurance startups are being killed off along with innovations in coverage. HSA’s may very well cease to be an option (remember that all plans offered in America must now be approved by the Secretary of Health).
Even insurance giants that will no doubt still be in business under the new regime will be limiting their choices. Here in North Dakota we’ve learned that Blue Cross Blue Shield will be limiting the number of insurance products they offer from 50 down to 4.
How in the world is that limit on choice going to make health insurance better?Tags: blue cross blue shield, health care bill, health insurance, health savings accounts, nHealth, obamacare