Friday, February 20, 2015

Falling Dominoes

Have you ever watched someone stack dominoes then tap one and watch the rest fall? Some of these set ups are quite elaborate and took a long time to build only to collapse and fail in a matter of minutes.

This is what is happening to health insurance, and to an extent, health care as well, in the U.S. as a result of Obamacrack.

Assurant is a 100+ year old carrier that is losing money in the health insurance sector and will probably leave the market very soon. If not for the taxpayer funded "bail out money" (some might call it blood money) Assurant would have been gone long ago, or possibly never even entered the Obamacrack game.

The carrier lost $37M last quarter and losses would have been even greater if not for the government payola.
The health unit lost money even though it cut spending on expenses other than claims sharply, executives said.
Colberg said the biggest problem was last-minute moves the Obama administration made to let consumers hang on to "grandmothered policies," or policies purchased between the time PPACA became law and Jan. 1, 2014.
Health insurers had priced 2014 major medical coverage based on the assumption that most people who had coverage purchased before major new PPACA commercial health insurance requirements took effect in 2014 would have to replace the coverage.
The decision to allow grandmothering "dramatically altered the risk pool in 2014 and made the market much sicker than expected," Colberg said. - Life Health Pro

Political maneuvering and manipulation of the law led, at least in part, to unanticipated losses.

They must not have been paying attention when he said "If you like your plan you can keep your plan".

Looks like Assurant got Gruberized.

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