Insurer participation may drop if uncertainty surrounding Obamacare increases
Blue Cross Blue Shield insurers operating in the Affordable Care Act individual market will get close to break-even margins in 2017, according to a report from Standard & Poor's Global Market Intelligence.
Obamacare's individual market is fragile and needs about five years to stabilize since its inception in 2014, the report says. This means insurers in this market will likely not hit target profitability until 2018.
"After starting on the wrong foot in 2014, and deteriorating further in 2015, we are seeing the first signs in 2016 that this market could be manageable for most health insurers," the report said. "But it isn't on stable footing either."
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With the removal of the individual mandate (which they essentially did by executive order), healthier folks won't buy in at all. Without healthier folks putting in without taking out, the insurers won't be able to maintain their cost models.
ReplyDeleteIt will implode just like President Trump said!
Let the health care insurers write another health care law behind closed doors, like they did with Obamacare. It's why congress didn't know what was in the bill they were voting for. If the republicans let them, they'll make money again....and a lot of it. And the buyers of healthcare insurance...screwed again.
ReplyDelete