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What happens to Insurance Company Revenues now that ObamaCare® has failed?
Vanity | 11/12/13 | Vendome

Posted on 11/12/2013 5:19:08 PM PST by Vendome

So I am sitting here contemplating some business decisions and doing my forecasting for 2014. Suddenly it occurs to me the insurance companies must have done the same thing and expected a certain amount of customers and revenue relative to each spend.

Bit...here it comes....this forecasts are crap since ObamaCare® website doesn't make it easy to acquire a customer and in fact, it impedes utilization.

How are the presidents of these companies going to explain their churn and a funnel that operates more like a sieve ?


TOPICS: Your Opinion/Questions
KEYWORDS: 2big2fail; aca; bailout; dumb; dumber; obamacarebailout; snot; than; toobig2fail; toobigtofail
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The insurance companies cannot reaquire these customers without lapsing coverage.

Just a thought.

I'm on my phone so typing ain't easy.

1 posted on 11/12/2013 5:19:08 PM PST by Vendome
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To: Vendome

They have already written in bail out conditions into the law, they won’t lose a dime on this.


2 posted on 11/12/2013 5:21:04 PM PST by Vince Ferrer
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To: Vince Ferrer

Hmmm....

Haven’t seen that.

The gubmint indemnified them?


3 posted on 11/12/2013 5:21:47 PM PST by Vendome (Don't take life so seriously-you won't live through it anyway-Enjoy Yourself ala Louis Prima)
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To: Vendome

Obamacare goes into effect in 2014. So it has not even started! What has failed so far is the web site. $600 million to develop a web site can only happen in federal bureaucracy.

Obamacare will fail once it actually takes effect and runs for several months.

Which is why if republicans have any brains, they should be opposed to delaying it. Let the democRat debacle happen in November 2014 election after people feel the full effect of Obamacare.


4 posted on 11/12/2013 5:27:27 PM PST by entropy12 (Zero thanks to all who stayed home and helped elect president Zero.)
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To: Vendome

Also add that the Insurance Companies are the ones that pay the majority of the Hospital bills. Where will the Hospitals get revenue from as no one will buy insurance?


5 posted on 11/12/2013 5:28:17 PM PST by Son House (Democrats want you to use 'Great Recession' instead of 'Jobless Recovery', recession ended June 2009)
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To: Vendome

Small town clinics and hospitals will close down.


6 posted on 11/12/2013 5:29:09 PM PST by Son House (Democrats want you to use 'Great Recession' instead of 'Jobless Recovery', recession ended June 2009)
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To: entropy12

I would argue it has failed.

If 4-5 million people or more don’t have coverage on January 1, 2014 then the insurance companies will have lost significant revenues, with no hope of regain anytime soon.


7 posted on 11/12/2013 5:30:41 PM PST by Vendome (Don't take life so seriously-you won't live through it anyway-Enjoy Yourself ala Louis Prima)
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To: Son House

I was going to ask the trickle down question tomorrow.

Good ketch


8 posted on 11/12/2013 5:31:41 PM PST by Vendome (Don't take life so seriously-you won't live through it anyway-Enjoy Yourself ala Louis Prima)
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To: Son House
They won't. They WANT to destroy the system. It's Cloward-Piven at its best.

http://en.wikipedia.org/wiki/Cloward%E2%80%93Piven_strategy

9 posted on 11/12/2013 5:32:55 PM PST by MrChips (MrChips)
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To: Vendome

The insurance companies wrote the bill to begin with. They aren’t likely to lose anything. The losers will be the same as always, the working people who didn’t need this healthcare overhaul to begin with


10 posted on 11/12/2013 5:33:38 PM PST by Figment
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To: Vendome

How many %GDP growth are we sacrificing because of all this uncertainty the Federal government has dumped on our heads. How can anyone plane. No one can predict where they will strike next.


11 posted on 11/12/2013 5:34:57 PM PST by DManA
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To: Vendome

Keep up the great questions too. I’d definitely want to see how it is elaborated on, as with this one.


12 posted on 11/12/2013 5:36:06 PM PST by Son House (Democrats want you to use 'Great Recession' instead of 'Jobless Recovery', recession ended June 2009)
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To: Vendome

Little to no revenues, as the only ones signing up are the ones getting free subsidies. The rest of America is in sticker shock.


13 posted on 11/12/2013 5:38:43 PM PST by Son House (Democrats want you to use 'Great Recession' instead of 'Jobless Recovery', recession ended June 2009)
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To: Figment
...The insurance companies wrote the bill to begin with. They aren’t likely to lose anything...

Exactly. What's going to happen is there will be a crisis situation in January when the law takes effect.

The millions of people that have lost their policies and haven't been able to sign up on the website will be in dire straits. So, Congress will pass some kind of emergency legislation giving subsidies to these folks to buy insurance at the HIGHER RATES.

If you're an insurance company what's not to love about that?

14 posted on 11/12/2013 5:40:58 PM PST by FReepaholic (Stupidity is not a crime, so you're free to go.)
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To: MrChips

Also living in a rural community will soon require travel to get to a medical facility. Good-intentions-Democrat didn’t think things through at all after not reading the bill.

And that where Republicans must start stating Democrats, individually and collectively have poor judgement and make bad decisions, one stupendous example after another, stimulus, health care, housing, student loans, cash for clunkers...


15 posted on 11/12/2013 5:46:14 PM PST by Son House (Democrats want you to use 'Great Recession' instead of 'Jobless Recovery', recession ended June 2009)
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To: Vendome

You cannot fool companies like you can fool individuals through the media. They can put 2 and 2 together a lot faster and better than most.... because it’s their dime on the table.

They knew that the ultimate agenda was to eliminate the private sector insurance industry all-together.

The insurance companies saw the writing on the wall.
They KNEW they were in a dying market once Obamacare passed.
I will guarantee you that top level plans in private companies includes an exit strategy.

They are just not allowed to talk about it.


16 posted on 11/12/2013 5:47:14 PM PST by Safrguns (PM me if you like to play Minecraft!)
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To: Vendome
From what I have seen insurance companies are taking action to retain customers. I've seen more marketing material in the last month than in the preceding year from my insurer. And they are now promoting an early renewal of existing policies that would expire early in 2014 so you can keep your policy until December 2014.

They're offering what their customers want, I suspect because they pretty quickly realized none of the customers they cancelled were picking up the new Obamacare compatible policies.

The longer term risk for the health care industry will be the greater exposure of hospitals and doctors to credit risk from high deductible policies. As the percentage of people with high deductible policies increase the charge-offs by hospitals increase.

But there is plenty of money in the health care industry. Just look at how many hospitals have built new facilities in the past couple of years. And how many new drug stores have been built.

17 posted on 11/12/2013 5:48:04 PM PST by freeandfreezing
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To: Vendome
If 4-5 million people or more don’t have coverage on January 1, 2014 then the insurance companies will have lost significant revenues, with no hope of regain anytime soon.

I read somewhere that there's a provision in O'Care that covers the insurance companies for the first three years if their losses are over a certain percent. No matter what happens, the insurance companies will not lose.
18 posted on 11/12/2013 5:56:39 PM PST by Shannon
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To: Son House

Also— as the insurance companies revenues fall, their stock values will fall, pissing off stockholders. Even some of those stockholders are wealthy enough to not care about the cost of Obamacare, but they don’t like to see their investments tank.

When investments in over 18 percent of the economy start to tank, it drags down the entire stock market. This will be a perfect example of ‘The Domino Effect’.

Doctors will leave the system & retire or go do something else. Other threads here have said that doctors need to know that they will need 9 months to 12 months of operating capital on hand when Obamacare kicks in because they won’t be getting paid for a very long time. It already takes up to 180 days for some Medicare payments to be paid to the docs.

Hospitals won’t be able to keep the doors open. Payments for new technology & machines won’t be made timely. Drug companies won’t get paid timely. Do all these entities have 12 months of capital on hand to keep going?

Collapse will be deadly.

How much NEW revenue was Obama expecting to have from all the companies who no longer have health care premiums to deduct from their bottom line???

Then- when the average homeowner learns that if he doesn’t pay an outrageous premium for Obamacare & is facing JAIL or worse, how long before mortgage payments become delinquent & another BIGGER round of foreclosures hits the American economy?

These same homeowners have paid their mortgage payments for years & now have only 30 hours a week instead of 40 in their paychecks...a 25% drop!. Then add in the Obamacare premiums & chaos will hit VERY SOON!!!

Start connecting the dots-—Obama wants CHAOS and he is getting exactly that....Mark my words.


19 posted on 11/12/2013 5:59:59 PM PST by ridesthemiles
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To: Vendome

That is a brilliant question. Post of the day, maybe the week, IMHO.


20 posted on 11/12/2013 6:01:22 PM PST by Hardastarboard (You can keep your doctor - if you lock him in your basement.)
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