Looks like they recovered most of it. (Or so we are told.) But multiply this across the 50 states.
That’s 7 in 10 Obamacare policies.
Looks like the Obamacare crony compromise just wasn’t rich enough in the end.
Insurance policies have to underwritten. That is they have to be assessed for risk. Real numbers have to be used.
In places for instance where car thefts are off the charts car insurance premiums are sharply higher. Why? Because the premium from the policies issued, taking into account the investment return possible from insurance reserves,
So long California. (These articles just keep popping up every other week.)
Death spiral for Obamacare?
Obamacare was constructed in slapdash fashion in an effort to head off the rising anti-Obamacare sentiment exhibited by millions of Americans at the time. The Dems were able to squeeze the law in using some questionable procedural moves without one Republican vote. Concessions were made to Pharma. (Parts of Obamacare were written by Big Pharma.) Other concessions were made to the big health insurance companies. (Parts of Obamacare were written by the big health insurance companies.) All in an effort to get something which looked like universal healthcare under the wire.
The more complicated a government program, the more crony it is.
So let’s see…Obamacare has infused the health insurance companies with heaps and heaps of taxpayer dollars. Big Pharma has done almost equally as well under the cronycare regime. Premiums for terrible policies – which as I see it could largely be bought for the same or lower prices before Obamacare – are going up.
Yup, this thing worked out great.
It sure is..Sure is…
Obamacare, which passed through Congress on questionable procedural grounds, the rejection of which was the wave on which many a House GOP freshman rode into Congress, is settling into law. And the Republicans are now helping to make it happen. I guess pharma, hospitals, and the insurance companies like their new taxpayer financed revenue streams.
Of course the health care companies like Obamacare. THEY WROTE SIGNIFICANT PORTIONS OF IT. That was the deal with the “devil” Obama made. The Dems essentially gave the insurance industry (and other parts of the health care industry) a massive transfer of wealth from America’s middle class to their corporate bottom lines.
Lesson here is – get a lobbyist.
The train wreck continues to pile up.
Word coming down the anecdotal (and now non-anecdotal) grapevine is that Obamacare is a developing nightmare. No one knows how it’s going to work in the long run, or the short run for that matter. There seems to be pain at every level. From the patients who have no idea what they are covered for, what a deductible is etc., to doctors who are increasingly just dropping out and retiring, things are not going well.
We have long railed against Obamacare as a vehicle of crony capitalism, as a cynical political play, as an unfair burden for small business, but stories like the one attached really put the situation into focus.
Pretty blatant stuff. As a former insurance underwriter (and sometimes agent) I can tell you first hand that brokers and agents loathe competition. Which is understandable. Competition means having to lower prices on a highly commoditized product. That’s not good for commissions.
This is one of the reasons why insurance is such a “highly regulated industry.” It’s not just about looking out for the consumer that’s for sure.
Insurance is a “highly regulated industry.”
I say this as a former insurance underwriter who often looked at statewide filings of other companies and as one who sold insurance in multiple states in college. Insurance is a game of very cozy relationships on the state level.
It’s not that Obamacare is a horribly complicated program which has screwed up healthcare for millions of people, which increased rates rather than decreasing them as promised, which was passed without even 50% of the American people supporting it, which has proven to be a crony capitalist vehicle for the big health insurance companies. No, you don’t like Obamacare because you are ignorant of the program’s genius.
And the drug companies would lose money too as the author of the attached article points out.