Obamacare Bleeding Out

[Rupert Pupkin]

Originally Posted by jms62

Yes I believe anything an insurance company looking to jack up rates so they can give execs hundreds of millions in stock options tells me cause I read it on the Internet.

http://money.cnn.com/2015/01/21/inve...ngs-obamacare/

http://www.latimes.com/business/hilt...03-column.html

Maybe it depends on which specific market we are talking about, but the article gives plenty of examples and plenty of statistics. And it's not just United Health.

"A report from McKinsey & Company found that in the individual market, which includes the ObamaCare marketplaces, insurers lost money in 41 states in 2014, and were only profitable in 9 states."

"There have been some rumblings of discontent from Blue Cross plans. The plan in New Mexico already dropped off the marketplace there last year after it lost money and state regulators rejected a proposed 51.6 percent premium increase. Now, Blue Cross Blue Shield of North Carolina says that it might drop out of the marketplace because of its losses."

I doubt these companies would be dropping out of these markets if they were doing well.

Anyway, we will see who is right. If the article is right we will see premiums rise substantially in the near future. I think the main problems are with the PPO market, not the HMO market. I would guess there are probably 10x more people with HMO's than PPO's.