Moody’s Downgrades Health Insurance Industry Due to ObamaCare
One advantage of disregarding the rule of law and governing basically as a dictator is that it allows Obama to make changes to the laws his allies in Congress ram through on the fly, without any tedious constitutional rigmarole. A disadvantage is that dictatorships don’t tend to be as economically successful as the USA was prior to its fundamental transformation. Moody’s downgrade of the health insurance industry from “stable” to “negative” due to ObamaCare helps illustrate why:
The White House has changed the playing field on the fly in recent weeks to ameliorate the consequences of the law, after an estimated 4 million to 5 million Americans lost existing plans that did not comply with Obamacare standards. The move came on top of other last-minute changes, such as a decision in July to delay the so-called employer mandate from 2014 to 2015, or after the midterm elections.
Moody’s said those changes have unsettled the marketplace.
“While all of these issues had been on our radar screen as we approached 2014, a new development and a key factor for the change in outlook is the unstable and evolving regulatory environment under which the sector is operating,” Moody’s said. “Notably, new regulations and presidential announcements over the last several months with respect to the [Affordable Care Act] have imposed operational changes well after product and pricing decisions had been finalized. …
“In 2015, insurers will need to deal with the implications of the employer mandate and the second year of the individual mandate,” Moody’s said. “Both require substantial lead time with respect to product development and pricing. Ad hoc changes to these provisions, as experienced at the end of 2013, would add additional risks and financial uncertainty.”
Careful now, Moody’s. Remember what happened to S&P when they announced a downgrade the Regime didn’t want to hear.
Vice President Joseph R. Biden singled out “peace of mind” as one of Obamacare’s top advantages in a speech Thursday to health care advocates in Washington.
Not even Joke Biden is any more out of step with reality than calling ObamaCare the “Affordable Care Act” (it is raising premiums by $7,450 per year for a typical family of four), or Obama’s incessantly repeated lie that we would be permitted to keep our healthcare plans.
Don’t worry too much about health insurers. Those with a seat at Big Government’s table had to know from the beginning that ObamaCare would bankrupt them — without ongoing bailouts from the taxpayers. But ongoing bailouts are part of the plan.
Health insurers are no longer in business to sell insurance, but only to provide an illusion that some remnant of the free market still exists in an industry that has in effect been nationalized.