As such, the additional cost to insurance companies though large may not be so burdensome that they need a bailout to survive.
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Except they are guaranteed a bail-out by the law itself. The federal government is bound to cover 80% of any losses the insurance companies might experience in a given “risk pool”.
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This is true. But 80% isn’t 100% and the stockholders and the stock market will render a harsh judgement on these companies. Premiums will rise to compensate and the pool of good money making customers will decline.
How do you spell Death Spiral?
How do you spell Death Spiral?
O-B-A-M-A-C-A-R-E