How many Insurance Companies will stop writing new policies?

Today | Myself

[dila813]

With only a 2.3% profit margin, how many Insurance Companies will stop writing Individual Health Care Insurance Policies when faced with competing against a Government Option??

I predict 90%.

[dila813]

So much for Healthcare Choice.

[incredulous joe]

How many jobs will that be, Barry?

These knuckleheads are doing everything that they can to actively destroy our economy.

It is obvious.

[PeterPrinciple]

When congress passed the Medical Savings Account, no existing insurance policies met the criteria. The insurance companies had to write new policies to meet the qualified deductible amount. Stupid govt........ didn’t even talk to the insurance industry.

[dila813]

No one will be able to get their health care for 6 years and they will lay off these administrators immediately.

It is a simple business decision. You want to make money and limit risk.

Why would anyone continue to sell Insurance?

[eyedigress]

Get your policys now. If the likes of Mutual of Omaha lose this battle its a race to mediocrity. There will be no incentives to keep rising.

[Conservative Actuary]

Another killer is the minimum loss ratio standards. That will make it very difficult for insurers to maintain the proper capital reserve levels. That means companies will be more likely to go bankrupt. Which of course will allow the government to step in bail them out and then take control. ObamaCare is just slow motion Fascism.

[Brad from Tennessee]

I have a few acquaintances who are successful professionals and Democrats. I've been arguing that it's not just that their premiums will go up under ObamaCare but that within a year or so their policies won't be renewed. The insurers will be moving out of the market in the time it takes for policies to expire. Who is going to remain in a marginally profitable business on which the government has declared war?

[dila813]

It is a one hit pony though, the young don’t vote unless their own money is at stake.

[dila813]

It is a simple business decision, risk vs reward.

Who is going to risk 150% with only a .04% return, I think there are better places to invest that money and make more.

This is why I am against the public option, it will drive all competitors out of the market.

[GOPJ]

Here’s the problem - why would a company offer a good plan when they can pawn us off to state crap? We won’t be picking - the companies we work for will be “cost cutting”...

[Mark17]

These knuckleheads are doing everything that they can to actively destroy our economy.

You are correct sir. Some say Obama does not know what he is doing. He knows exactly what he is doing. The destruction of the economy might be his highest priority. That would clear the way for a socialistic/communistic take over, martial law, and the total loss of freedom.

[taildragger]

Another killer is the minimum loss ratio standards. That will make it very difficult for insurers to maintain the proper capital reserve levels. That means companies will be more likely to go bankrupt. Which of course will allow the government to step in bail them out and then take control. ObamaCare is just slow motion Fascism.

Your not the guy that called Mark Levin the other night to explain this are you?

Anyway yes, this is a poison pill to kill the industry.

[Conservative Actuary]

No, but I heard that and that guy was spot on. I have priced insurance for a number of years and have never signed off on a rate filing that would have a 85%+ loss ratio.

[GOPJ]

bump

[Brad from Tennessee]

Even the AP says health insurers barely make a profit:

http://www.google.com/hostednews/ap/article/ALeqM5iorq8FSpX_4LX_UG_xHQIjJY3SvgD9BI5VB00

[dila813]

that’s right, even now it doesn’t make sense for them to issue new policies. It is really tight especially with the reduced pool of health users.

When people get laid off, the pool gets smaller and they loose money.