Wednesday, January 23, 2013

Playing Chicken

You may remember the game of "chicken" from your youth. Usually a lot of testosterone in the air as two males seek to prove which one is better in hopes of winning the affection of a female.

In case you forgot, perhaps this scene from the original Footloose will refresh your memory. Kevin Bacon and some other guy are trying to win the heart of the hot girl played by Lori Singer. Instead of cars, they used tractors.
Seems we have an updated version of chicken, but this time it is health insurance companies vs. the Obamacare exchanges. It doesn't appear the carriers are embracing this idea with open arms.

First out was insurance behemoth UHC saying "Maybe Not".

Now the folks at Wellpoint are on the dance floor and making similar comments.
Wayne Deveydt, WellPoint's chief financial officer, said the company believes it is entering 2013 on a strong note.

But uncertainty federal budget actions, overall medical utilization trends, the severity of the 2012-2013 flu season, and implementation of the Patient Protection and Affordable Care Act of 2010 (PPACA) are good reasons for WellPoint to be cautious when predicting what might happen to earnings this year, Deveydt said.
Life Health Pro

So will Wellpoint go all in, or will they play chicken when it comes to the exchanges?

Guess we will have to wait and see. 

Did I mention Lori Singer is hot?

Thanks to Henry Stern for this tip.

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