It’s proof anew that Obamacare was always destined to erode into a Medicaid-like benefit. Critics, including myself, have argued this for years. What couldn’t be predicted was how quickly it would be the Medicaid-only plans that serviced it.
We’ll see a clearer split in the health plan space — between plans that continue to service the Medicaid/Obamacare segment, and those that move more squarely into Medicare and into the commercial markets. Obamacare plans have all but ended PPO offerings. Most of the plans this year are closed network “exclusive provider organizations” that are the most restrictive HMOs structure possible. In the end, as Obamacare becomes more like Medicaid, it will be the Medicaid HMOs servicing it.