Insurers warn losses from ObamaCare are unsustainable

by Peter Sullivan  |  published on April 15, 2016

Health insurance companies are amplifying their warnings about the financial sustainability of the ObamaCare marketplaces as they seek approval for premium increases next year.

Insurers say they are losing money on their ObamaCare plans at a rapid rate, and some have begun to talk about dropping out of the marketplaces altogether.

“Something has to give,” said Larry Levitt, an expert on the health law at the Kaiser Family Foundation. “Either insurers will drop out or insurers will raise premiums.”

While analysts expect the market to stabilize once premiums rise and more young, healthy people sign up, some observers have not ruled out the possibility of a collapse of the market, known in insurance parlance as a “death spiral.”

In the short term, there is a growing likelihood that insurers will push for substantial premium increases, creating a political problem for Democrats in an election year.

  • Ernesto

    Here is the FACT!
    Americans are starting to realize that Obama care is a fraud as their insurance premiums increase, deductibles rise and their health insurance cover declines, while Muslims are exempted from buying Obamacare at all.

    Dhimmitude… The part of ObamaCare Bill That was taken out after being made a public knowledge. Obama had the balls to use Islamic word Dhimmitude when writing the healthcare bill, as if Americans were to stupid to discover what Dhimmitude meant or Obama’s real intentions behind his healthcare bill.

    But make no mistake just because the word was taken out of the Obamacare bill does not mean it will not be done away with. As a matter of fact Muslim’s are exempt from having to buy health insurance due to thier faith, along with illegal’s ,non American’s.

    This is a Dhimmitude of it’s own when only a certain type of people have to foot the bill’s for other’s, like it has been done to American’s. Only American’s will be made to pay for health insurance or be fined while Non American’s will be taken care of through Obamacare.

    Have you ever heard of the word Dhimmitude? Most people have no idea what this word means. So what does it mean?

    Well, Dhimmitude is the Muslim system of controlling non-Muslin populations conquered through jihad (Holy War). Specifically, it is the TAXING of non-Muslims in exchange for tolerating their presence AND as a coercive means of converting conquered survivors to Islam. IT A TAXING SYSTEM, WAY TO PAY FOR MUSLIMS AND IMAGRANTS HIS BRINGING INTO THE COUNTRY. FACT! RESEARCH???

  • Robert Russell

    Who would have thought this would happen after all this is obamacare.

  • Patrick Driscoll

    REMEMBER this is OBUMA CARE, not the affordable care act. Read the Act. They have rights to take and have taken huge sums form medicare, social security, you and me and we still have the same amount, if not more, uninsured and the number of underinsured has increased, small companies not hiring about the 30 employee limit. This devil worshiping asshole in the WH screws-up everything he touches.

  • Buckeye conservative

    Obongo will merely give lots of money to the insurance companies rather than have them pull out of his “legacy” program.

  • Patrick Driscoll

    Even a 12 year old know that obuma care is junk. It only survives by taking huge funs from medicare or Soc. sec. Obuma care is opposite of insurance. Even black skin not change insurance and the world. This pussy in the WH has no clue about anything. He is a embarrassing on all levels.
    He got a lot of votes for being black, but he is not even black. could not even get that right and his parents dumped him so his GM had to raise him.
    Obuma is the poster child for an abortion.

  • Dan

    Many knew that this day was coming. Some communist/socialists want it to fall, others such as myself knew that they would cause it to. What can you do when a corrupt system considers something to be “constitutional”?

  • Rodney Steward

    Seems that Obamacare is going to plan! It was never meant to work like everything else he’s done to this country! Now the one payer plan will be forced on everyone, a totally gov. run system, Like The Rest Of The World!!! At the rate this POS is going he’ll have us to the 3rd world level soon, God knows he’s let enough of them in here!

  • stan lee

    Obamacare was a loser going into it. Obama winked at the insurers who knew that plan was suicidal to insurers. Obamacare was originated to insure high-loss health risks in the same class as low-risk applicants. I think Obama was tempted to make Obamacare mandatory by government requirement, in order that the public couldn’t reject it. Its premiums and high deductibles were bound to be a failed system, it contradicted everything about health insurance going back to health insurance’s origination in ancient China.
    Obama was using the health insurance concept as a method of controlling the public. It was never going to be a sound insurance plan and now we see it for what it is.

    • Rodney Steward

      We must be reading the same book!:-)

      • stan lee

        Thirty-two years of insurance underwriting was my book! :):)
        The mad rush to pass it was because the Democrats saw it coming that they’d lose power in Congress. Remember that idiot Pelosi who said, “We have to pass it to see what’s in it.”
        Translation: Most of the voting Democrats of Congress had no idea what they were voting for. Remember, there wasn’t a single Republican “yes” vote for Obamacare. The Democrats vote in “lock-step.”

  • David

    IT NEVER was sustainable!!!! It’s just a PLANNED COLLAPSE, to get everyone on the FEDERAL TIT!!!! But it won’t stop the BANKRUPTCY OF AMERICA (spending money the Government doesn’t have)!!!!

  • Blogengeezer

    Just experienced classic Obamacare. Bacterial infection.. Urgent Care prescribed one treatment, didn’t work, they then said, “Go see your primary, we can not help”.

    Made appointment with primary, weeks later they prescribed another treatment, still not cleared up. When called, Primary said “We cannot help, Go to Urgent Care”…

    Leaving for Texas….. to locate a private, non OCare Dr, one that actually gets paid to ‘know’ what to do…

    The USA medical care system WAS the best, the envy of the world. ‘Fundamental Change’ was Promised, Fundamental Change is what is taking place… as Promised.

  • michaele

    I would rather see all those democrat motherfuckers dead!!!!!

  • bobnstuff

    Funny the law is set up that the insurers can’t lose but they are saying they want more money. They already get a 20% profit but they want more. Aetna is hurting, their stock has only double in the last three years. You don’t suppose that the fact that they support the republicans in this election has anything to do with their claims. Those mean Democrats not letting them rip off the public. Bad Obama!

    • Defend America

      You are so brainwashed it is pathetic. Insurance companies dropped out of the market place last year because they sustained a loss. In order for Obama care to work all the young and healthy had to enroll, to make up for the cost of the sick. They did not enroll . Obama care was not meant to succeed are they would not have let the kids stay on their parents policy’s until age 26. We the tax payers are having to buy insurance for our personal use, then we are having to subsidize for the poor, then we pay for those who refuse to buy and last but not least we pay or the illegals. Obama care is a rip off to the taxpayers and a flop. It was said today that the original estimate of enrollment was 24 million to high.

      I am sure insurance companies are still making a profit but not the margin they want, so they will raise the premiums to make up the difference. People that do not own a business is so naive as to how the business world works. Liberals want businesses to pay $15.00 per hour for flipping hamburgers are answering a phone …… they want businesses to give 12 weeks paid sick leave ……they want businesses to provide day care…… Pay for health insurance and the list goes on and on. Wake up it is not going to happen.

      1. Should a business comply with all these requirements then the price of the product will atleast double. The average person will then refuse to buy their product. Then the business goes belly up. Now you have loss of jobs. This is a fact! Hillary and Sanders are promising all these things that the public wants to hear, it all sounds great but the public is forgetting one thing the majority of businesses are single family middle class people who can not survive under these requirements. Yes Wal-Mart…..Sears…..Kmart’s all have several stores which are the company’s the Democrats are claiming they are going to go after but it is the small businesses that will be hit the hardest. The large corporations will cut back on hours to get around alot of the regulations, there goes all your share the wealth . Sure you will make about $50.00 to $100.00 more per week and get to work less, but your taxes will go up, groceries up, clothing up, postage up, insurance up so on and so on.
      Companies tàke a risk every day operating a business and the cost is astronomical. Sure Walmart makes billions of $$$$ and a few other companies, insurance companies for one, but as I said it is the middle class that gets hit the worst.
      1.The rent for commercial property is not cheap a small 1500 square foot building in my area is $10,000.00 per month. Much higher in other area’s. Millions if you own the property.
      2. Up keep for the building ( heating and air …. plumbing….damages ) $$$$$
      3. Insurance for contents and personal injury $$$$$ If you own property $$$$$$$$$$$$$$$
      4. Merchandise $$$$$$$$$$$
      5.Payroll $$$$ are $$$$$$$$$$ depending on how many employees.
      6. Theft and damage’s $$$$$$$$$$$
      7. Utilities $$$$$ always higher for businesses that private.
      8. Business License $$$$ to $$$$$$$$$$ depends on sales.
      9. Unsellable merchandise $$$$$$$$$ buyer bought customers did not.
      10. Payroll taxes ( taxes paid by company over 8% per employee to match your tax plus unemployment tax. )
      11. Property tax on displays…. Shelving…….office furniture ect.
      12. Shipping fee’s $$$$$ for merchandise.
      There are many other expenses that people do not even think of before the owner even gets his pay. Some days the small business owner does not even make enough to pay for the merchandise much less the help but they still have to pay it.

      When government begins making regulations then prices has to increase just to break even, if the owner does not have enough money left over to pay his/her salary he will close. More jobs lost.

      Insurance companies has all the above plus share holders to pay. If a share holder makes less money than they use to then they will sell their shares and look for a better stock. So insurance companies try to give them a profit every year. Prices has got to increase.

      Just think about it you will know I am telling the truth. Do you remember when automobiles were $3600.00 are homes were $12,000.00 ?
      If so do you remember why prices got to where they are today? The government started placing all these regulations on them. Enough said.

      • bobnstuff

        Go look at the Insurance companies P&L statements, They are not loosing money and the stock prices show it. Just who is brainwashed. It’s all there in black and white if you look.

        • Defend America

          I said insurance companies were dropping out of the market place because of losses that is true no matter how you want to twist the facts. I agree with you in part Fortune 500 does say they have had an increase in profits ( the top 5 companies ) with an estimated cost to taxpayers of 900 million $$. The bailout amounts to 6.7 % of total profits. The more critical importance will be if regulators deny rate increase needed to forstall losses on the Exchange. Some states already endured a massive increase of 49% on average.

          If you read my post again you will notice I was talking about the middle class losing jobs and closing their doors, not the top 5 insurance companies. My post was to educate those wanting the government to implement all these requirements on businesses thinking there will be no increases in products.

          Hillary and Sanders are making all these promise’s that can not be done without some consequences. They keep saying the top 1% will pay for all these benefits but as you can see that is just not true. You yourself pointed out the profits being made from Obama care
          you just did not point out that it was only the top 5% making the profits! While consumers are finding cost rising and lost of their Doctors and quality healthcare.

          So thank you for helping me make my point.

  • Dan

    Remember Nancy Pelosi said “We have to pass the bill to see what’s in it”….

  • William Davies

    Where do all the young, healthy people come from if we keep killing them before they’re born, and for the survivors, destroy their minds with legalized drugs?

  • MeVisaEasy

    Don’t worry Paul Ryan and Obama will give them a bailout!

    • Rodney Steward

      Just like they’re wanting to do for Puerto Rico! They’re actually wanting to grant Puerto Rico Bankruptcy protection called Super Chapter 9, which weans we bail their sorry a$$ out with money we don’t have!

  • Centurion

    “…insurers will push for substantial premium increases, creating a political problem for Democrats…” Would love to see the demon-communist-cRATS catch some blowback. But the insurers better hurry. November is just 7 months away.

    • Gary D Flatt

      The bucket is full of holes. You can’t get blood out of rocks, which is the intellect of Marxists.

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