A study produced by the Society of Actuaries predicted medical claim costs could jump 32 percent nationally by 2017 for individual policies under the Affordable Care Act. The research study was widely written about in the press, including The Daily News.
Kaiser Health News and Politico Pro are now reporting the study failed to note the close ties between the actuaries making the forecasts and the insurance industry.
“Undisclosed in the SOA report was the fact that about half the people who oversaw it work for the health insurance industry that is warning about rate shock. The chairman of society committee supervising the project was Kenny Kan, chief actuary at Maryland-based CareFirst BlueCross BlueShield,” Kaiser Health News and Politico Pro reported.
Optum, the sister company of UnitedHealthcare, performed the research for the study. UnitedHealthcare is the nation’s largest private health insurer, the news organizations jointly reported.
Supporters of the Affordable Care Act pointed out that the actuary society’s study failed to factor in the potential for competition to lower prices and the subsidies people will receive to purchase coverage.
FedEx Corp. said it expects a decision “shortly” from The U.S. Postal Service on whether it will continue providing domestic air transportation services for its First-Class, Priority and Express Mail services.
The Memphis-based shipping giant disclosed that it anticipates a contract announcement soon in its most recent quarterly regulatory filing.
The U.S. Postal Service has solicited proposals for the delivery of these services after FedEx Express’ current contract ends in Sept. 2013. FedEx warned that the services could be transitioned to another provider, and that even if the Memphis-based company does retain the contract, the terms and conditions of the new arrangement may be “less favorable.”
FedEx also said that any changes in the Postal Service’s operations, network, services offerings or pricing could have an adverse result on FedEx’s financial results. Because the independent government agency is both a customer and a vendor for FedEx, the Postal Service’s financial struggles could also have an adverse impact on FedEx.
The Postal Service has said it could run out of money if Congress does not allow it to change its business model and increase profitability. Yesterday, The Postal Service said it would not end Saturday delivery of first-class mail, citing Congressional opposition.