Insurance companies: Obamacare losses are unsustainable

Insurance companies who offer policies on the Obamacare exchanges are worried about the financial sustainability of the Obamacare marketplaces and are looking for big increases in premiums next year. If they don't get what they want, many companies will probably drop out of Obamacare altogether. The Hill: “Something has to give,” said Larry Levitt, an expert on the health law at the Kaiser Family Foundation. “Either insurers will drop out or insurers will raise premiums.” While analysts expect the market to stabilize once premiums rise and more young, healthy people sign up, some observers have not ruled out the possibility of a collapse of the market, known in insurance parlance as a “death spiral.”  In the short term, there is a growing likelihood that insurers will push for substantial premium increases, creating a political problem for Democrats in an election year. Insurers have been pounding the drum about problems...(Read Full Post)