General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsIm a former health insurance CEO and this is what Obamacare repeal will do
Theres a joke among insurers that there are two things that health insurance companies hate to do take risks and pay claims. But, of course, these are the essence of their business!
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Repeal and delay is naïve.
And now comes the reality of the repeal and replace initiatives from the Republicans. If the uncertainty of this market was large before with the ACA, it is almost unknowable under whatever comes next. Thus the initial exit of some latecomers, including United Healthcare, and undercapitalized minor entrants, such as nonprofit co-ops, is almost certain to become a flood of firms leaving the exchanges. They have little choice since the risks are too large and the actuarially appropriate rates are still not obvious given the political turmoil and changing rules.
Some in Congress seem to think that passing the repeal part immediately but delaying its implementation for two or three years will somehow leave everything as it is now. But this naive notion misses the fact that the riskiness of the Obamacare individual insurance exchange markets will have been ramped up to such a level that continuing makes no sense.
Even if a company reaches break-even in the delay years, it will lose when the repeal is effective. If the premium subsidies now available to lower-income enrollees go away immediately and the mandate to sign up for an insurance plan disappears, then the number of people purchasing individual policies on the exchanges will drop like a rock. In fact, it is clear that even debating this scenario is likely to be self-fulfilling, since insurers must decide on their participation for 2018 by the late spring of 2017. Look for many to leave then.
When the risks are too high, just exit.
https://www.msn.com/en-us/money/healthcare/opinion-i%e2%80%99m-a-former-health-insurance-ceo-and-this-is-what-obamacare-repeal-will-do/ar-BBxP3o3?li=BBnb7Kz&ocid=edgsp
Girard442
(6,075 posts)Once you get past that, it's a piece of cake.
Hoyt
(54,770 posts)Wellstone ruled
(34,661 posts)First is if ACA is wiped out,the Stock Market will crash. A combination of Stocks and Bonds are used by the Insurance Companies as a Hedge to pay Claims.
Second and this is the most important. The Insurance companies will never be able to recoup the loses of the Premium Dollars. Once the Rebates are gone so are the Individual Policies. Austerity caused those Persons who benefited by ACA,to be priced out of the Market. Again causing a Market Crash.
You break it,you own it.
colsohlibgal
(5,275 posts)They are prolife only till the baby is born after then not so much. You can starve while you die of a treatable disease.
Watch Michael Moore's "Who To Invade Next" and see how people live in most of Europe. So different than here, so much better for the common folks. Not the Plutocratic mess we have.