By Rick Moran
President Obama’s “fix” for those with cancelled policies may make it likely that insurance companies participating in the state exchanges will lose a boatload of money. The pool of healthy people who participate in the exchanges will be much smaller if those with cancelled individual policies are able to remain outside the exchanges. That means that next year, companies will be forced to radically increase insurance premiums – something state insurance boards are not likely to agree to.Hence, the probability that companies will suffer losses if they continue to offer policies on the exchanges.
Obamacare anticipates that possibility by funneling taxpayer dollars to insurance companies if their losses reach a certain level. Republican Senator Marco Rubio is looking to close this loophole and prevent the government from bailing out insurance companies.
