Here's why healthcare agencies and insurers will go broke

[thisnumbersdisconnected]

Just when the Democrats thought it was safe to go back in the water ...

Daily Caller: Survey shows US sees sharpest health insurance premium increases in years

Americans have recently been hit with some of the largest premium increases in years, according to a Morgan Stanley survey of insurance brokers.

The investment bank’s April survey of 148 brokers found that this quarter, the average premium increase for customers renewing an insurance plan is 12 percent in the small group market and 11 percent in the individual market, according to Forbes’ Scott Gottlieb.

The hikes — the largest in the past three years, according to Morgan Stanley’s quarterly reports — are “largely due to changes under the [Affordable Care Act],” analysts concluded. Rates have been growing increasingly fast throughout all of 2013, after a period of drops in 2012.

Though the industry's anticipation of the ACA "going live" on January 1 resulted in some incremental increases leading up to the launch, two other factors enter in, which typify the hidden costs of the ACA that the Democrats knew about, but didn't care about.

Those are, the limitation on insurers charging older policy holders more, which is an actuarial necessity, and the fact the ACA forbids underwriting -- the actuarial as well as the health and financial qualification processes that go into writing an individual policy. Because of those unprecedented restrictions, the insurance companies, within and outside of the ACA sales structure, are forced to raise prices. This is what is systematically destroying healthcare in the U.S.

 

[InTheLight]

If the insurers are charging more for premiums, why will they go broke?

 

[thisnumbersdisconnected]

If the insurers are charging more for premiums, why will they go broke?

Because the ban on underwriting and actuarial considerations prevents them from controlling costs, and the government will continue cutting back on what they will pay for a far greater rate than they can reasonably raise premiums.

 

[InTheLight]

Because the ban on underwriting and actuarial considerations prevents them from controlling costs,

So then the insurance companies simply apply a formula to predict an average underwriting factor, raise rates, and merrily go on their way. I've also read that underwriting will be allowed on large groups, just not on small and individual policies.

and the government will continue cutting back on what they will pay for

When you say "government will cut back on what they will pay for" you must be referring to Medicare and Medicaid?

 

[thisnumbersdisconnected]

So then the insurance companies simply apply a formula to predict an average underwriting factor, raise rates, and merrily go on their way. I've also read that underwriting will be allowed on large groups, just not on small and individual policies.

Who knows? with the Little Marxist Dictator governing "with a pen and a phone," anything could happen.

When you say "government will cut back on what they will pay for" you must be referring to Medicare and Medicaid?

They're doing that now with those two programs. You don't think they will do the same with the ACA?

 

[InTheLight]

They're doing that now with those two programs. You don't think they will do the same with the ACA?

The ACA does not make payments to private insurers except for Medicare and Medicaid, so no, I don't think they will do the same because they can't.

 

[thisnumbersdisconnected]

The ACA does not make payments to private insurers except for Medicare and Medicaid, so no, I don't think they will do the same because they can't.

Only because they haven't forced the collapse of their own program yet, but when they do, single-payer insurance will be the result. That's why we have to repeal this mess now.