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Healthcare

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How Alaska Fixed Obamacare

4/14/2017

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Please see article below about the fallacy of a death spiral. Hint: it's states and taxpayers who are in for it, not the insurance companies. The ACA does need improvement, and Alaska has gotten creative. Click to read the full Vox article by Sarah Kliff.

Last year, Alaska’s Obamacare marketplaces seemed on the verge of implosion. Premiums for individual health insurance plans were set to rise 42 percent. State officials worried that they were on the verge of a “death spiral,” where only the sickest people buy coverage and cause rates to skyrocket year after year.

So the state tried something new and different — and it worked. Lori Wing-Heier, Alaska’s insurance commissioner, put together a plan that had the state pay back insurers for especially high medical claims submitted to Obamacare plans. This lowered premiums for everyone. In the end, the premium increase was a mere 7 percent...

Click to read the full Vox article by Sarah Kliff.

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There are rampant concerns about the future of Obamacare right now. We don’t know whether its marketplaces will remain stable in 2018 or, as the president has predicted, explode as premiums rise and insurers drop out. But Alaska’s experiment is a reminder that the future of Obamacare isn’t entirely up to Republicans in Washington. The work happening 3,000 miles away in Alaska shows that states have the ability to fix Obamacare too — and that the Trump administration might even support those policies.

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