December 29, 2016

THANKS, HERITAGE!:

S&P Says Obamacare Isn't Failing (KEVIN DRUM, DEC. 27, 2016, Mother Jones)

S&P says that Obamacare isn't failing at all:

With better data supported by actual individual market experience, most insurers put in for increased premium pricing for 2016. Also, several insurers introduced narrower network products to control medical costs. Regulatory changes such as tightening the SEP rules also helped this year-over-year improvement. We expect the full-year 2016 underwriting losses to be lower than in 2015 and 2014.

....Insurers have put in meaningful premium rate increases for 2017...[but] we view 2017 as a one-time pricing correction....For 2017, we believe the continued pricing correction and network design changes, along with regulatory fine-tuning of ACA rules, will result in closer to break-even results, in aggregate, for the individual market, and more insurers reporting profits in this segment.

Hey, how about that! Now that insurers are pricing their coverage about where the CBO expected it to be, they're starting to move toward profitability. Who could have guessed that?

Posted by at December 29, 2016 7:56 AM

  

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