Insurers worry that delaying Obamacare enrollment will cut into their profits

Notice anything about the stock prices of the "Big 5" health insurers in the lead-up to Obamacare?
Notice anything about the stock prices of the “Big 5” health insurers in the lead-up to Obamacare?

 

We’ve been saying that the biggest beneficiaries of the Obamacare law are the insurance companies which are now privy to billions in taxpayer funded subsidies. The insurance and pharmaceutical companies threw their weight behind the Obamacare effort once they realized that the law would bring in millions of new customers who now were compelled to buy their products through force of law. The IRS itself enforces the revenue stream. Talk about a deal.

Now as Kathrine Sebilus does her best to explain that the President had no clue about how bad the roll out would be and continues to sell a half baked program (that is being kind) on Capitol Hill, insurers are warning lawmakers not to delay enrollment deadlines. This would significantly impact how much money the companies will make next year.

(From Bloomberg.com)

Allowing Americans more time to enroll for health coverage under Obamacare may raise premiums and cut into profits, insurers are telling members of Congress in a bid to stop such a move.

Extending the enrollment period would have a “destabilizing effect on insurance markets,” said Robert Zirkelbach, a spokesman for the Washington-based lobbyist group American’s Health Insurance Plans. Allowing younger, healthy Americans to sign up later, as they probably would, means less revenue for insurers counting on those premiums to help defray the cost of sicker customers, threatening industry profits.

Click here for the article.