Thursday, January 2, 2014

What a fine mess we have gotten ourselves into!

Have you guys thought about this?  If 4.7 million people had their health insurance canceled due to the ACA, aka Obamacare, and assuming that the average monthly premium was around $400.00 a month.  That adds up to $1.88 billion dollars a month.  Now if the Government is right and 2.1 million have sucessfully signed up to get insurance through Obamacare, that still leaves a cash flow deficit of $1.04 billion dollars a month for the insurance companies.  That's a lot of money they will no longer get.

How do they handle that?  Do they just eat that?  Nope.  Costs will have to be cut if it goes on for a while. And I think it will.  Early CBO estimates were that 6 million people would just pay the fine and NOT get insurance.  How many of those would be of the 4.7 million cancellations is anybody's guess.

Net result:  We may see some health insurance companies get out of that business.


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