That’s 7 in 10 Obamacare policies.
Looks like the Obamacare crony compromise just wasn’t rich enough in the end.
Insurance policies have to underwritten. That is they have to be assessed for risk. Real numbers have to be used.
In places for instance where car thefts are off the charts car insurance premiums are sharply higher. Why? Because the premium from the policies issued, taking into account the investment return possible from insurance reserves, must at the very least be equal to the losses in a given area. Otherwise the company is losing money. If the company loses enough money it will go under.
Same with health insurance. If too much is going out in payments to insureds versus the amount of premium coming in this is unsustainable. Welcome to Obamacare.
(From The USA Today)
Health insurer Aetna plans to cease its participation in the Obamacare health exchanges in all but four states.
The company’s decision, which it blamed on heavy losses tied to the insurance plans, follows similar moves by competitors such as UnitedHealth Group, the nation’s largest insurer.
Aetna said that in 2017 it would cease offering health care insurance options through the Affordable Care Act exchanges in 68.9% of the counties where it offered plans in 2016. It will continue offering certain plans inDelaware, Iowa, Nebraska and Virginia. Affected enrollees will keep their plans through the end of 2016 but must find alternatives for next year.