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Moody’s Downgrades Insurers Due To O-Care

From a seemingly surprised Washington Post:

Moody’s downgrades outlook for health insurers

By Sarah Kliff and Sandhya Somashekhar | January 23, 2014

Major credit-rating firm Moody’s on Thursday downgraded the outlook for health insurers from stable to negative, citing the new health-care law’s botched rollout as a significant factor.

The ‘botched rollout’ is the least of these companies problems. Obama hoodwinked the health insurers into believing they would get millions of new customers under Obama-Care. Which is turning out to be another obvious lie. (Just as we said it was from the start.)

Moody’s highlighted the relatively low sign-up rate among young adults and a slew of last-minute regulatory changes by the Obama administration as posing risks to health insurers selling policies on the new exchanges.

As we reported yesterday (and even before) the vast majority of people signing up for Obama-Care (90%) already had insurance. And those who didn’t have insurance are the elderly and sick, not the young and healthy that Obama-Care needs to become fiscally viable.

So all of these insurance companies who had to rewrite all of their policies to accommodate all of the new Obama-Care mandates are going to lose untold billions of dollars when all is said and done.

“We’ve seen a lot of risks come up on our radar screen,” said Stephen Zaharuk, Moody’s senior vice president and author of the report. “We thought they could handle some of them, but as they kept piling up, that became more of a concern.” …

Recent enrollment data shows that 24 percent of enrollees on the exchanges are young adults between 18 and 35, a demographic whose lower-than-average health-care costs would be expected to hold down premiums. The Obama administration has said it believes it needs 40 percent of exchange sign-ups to come from this age group. “If there is an older, less healthy population, the rates are going to face upward pressure,” Zaharuk said…

And Moody’s is just now figuring this out? Have they been in a cave?

Health-insurance executives have downplayed the Affordable Care Act’s rocky rollout as a major business concern, noting that they always expected the first year to be difficult. As a result, most viewed 2014 as an experiment and sold plans on only a handful of state exchanges…

So the Washington Post’s lead sentence in this article is a lie. (Just as we said.)

“Our view is we’re still in the early innings,” Cigna chief executive David Cordani told investors last week at the JPMorgan Healthcare Conference in San Francisco. “The first couple of years will be choppy, and we’re learning whether it can find its legs.” …

Talk about mixing your metaphors

This article was posted by Steve on Friday, January 24th, 2014. Comments are currently closed.

3 Responses to “Moody’s Downgrades Insurers Due To O-Care”

  1. Petronius says:

    Obviously Moody’s hasn’t gotten the message yet.

    One does not say anything that may be construed to be critical of ObamaCare or the Dark Lord.

    Don’t they remember what happened to Standard & Poor?

    Don’t they remember what happened to JPMorgan Chase?

    Jeesh. Some people can be really dense.

    Wait a minute! I almost forgot. Moody’s is one of the holdings of Berkshire Hathaway and Warren Buffett. Thus Moody’s can say stuff the rest of us can’t.

    Well, that explains a lot.

    “most viewed [Obamacare] 2014 as an experiment….”

    So there you have it in plain English straight from the lips of the Washington Post. They’re “experimenting” with our health care. Wonderful. Just wonderful.

  2. GetBackJack says:

    Insurance companies hung from their own canard

    Sad, but hey .. nobody liked you anymore, anyway.

  3. canary says:

    In it’s the ACA that insurers will be paid any loss by the federal government so why should they worry.
    They said on news there will be another couple of waves of people getting notified their insurance is cancelled.
    Imagine how they will feel paying premiums and then getting dropped.

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