More on Race to the Bottom
More evidence that exchange insurance will be like Medicaid insurance.
Who is backing away?
Cigna and UnitedHealth will each offer individual exchange plans in fewer than half a dozen states. Aetna, which earlier this year had said it would participate on the individual exchanges in up to 14 states, has since exited from seven.
Who is entering
Seven of the 10 plans in New York filed with the state so far are new entrants… In California, eight of the 12 insurers are selling commercial insurance to individuals for the first time, according to McKinsey. Four of Oregon’s 11 insurance plans are new. Statewide in New York, half of the 16 plans are testing the commercial insurance market for the first time.
What they are offering
These companies don’t normally offer insurance on the commercial market and will be relying on their experience managing government programs like Medicaid plans…The newer plans generally offer access to fewer doctors. Molina’s plans in Texas will have about 7,000 physicians. The state’s largest insurer, Blue Cross and Blue Shield of Texas, offers a network with around 40,000 physicians. (WSJ)
The profit margin would have to be extremely promising for me to want to enter into this this upside down industry/market.
I don’t blame these insures for pulling out
Pulling out could prove dangerous. There could be unintended consequences of pulling out. The market may end up stabilizing itself and create an even higher revenue industry.
indeed it could
The real question is: how many of those new entries will still be running in a few years?
Odds are none
I would have to agree to that.
Best of luck is all that I can say to those companies. Doesn’t look like it will be an easy road to travel.
Usually with startups it isnt.
Hopefully these new companies will at least be able to grab the percentages of those opting out.
If you are interested, this may pertain to your interests.
http://patientoptout.com/
Lucas, so you think that people should not have insurance and end up in the emergency room where we all pay for them? Or are you just waiving a Red flag of surrender?
I for one cannot be happier with the availability of insurance that will exist with obamacare. I grow tired of seeing my family receive 3rd rate care and treatment.
Exactly. The only people who oppose this are the ones who don’t know how hard it is to get by without it.
If you were to read the countdown to obamacare manual, you may feel differently.
https://secure.ncpathinktank.org/countdown/
Again my friend, I bet you have insurance. Why are you trying to convince others to go without?
Turn off the TV and turn on to life, you may get a different perspective…