Delaware Business Insurance Update from CNC Insurance Associates Inc. " Obama Care On The Path To No Longer Being Called Insurance" 12-22-13

The changes in the health care insurance market due to Obama Care are ground breaking. However these changes are quickly turning away from traditional insurance models. The insurance business is a "for profit" business where actuarial sound rates are charged to many in the hopes to cover the claims of others, with some money left over for profit. This is why the drafters of the new health care legislation put in a mandate. However with the White House exemption of employer plans and now recently, those who have had their current plans cancelled, the Obama Care health insurance model is at risk of collapsing as traditional insurance. Lack of the mandate reduces the spread and increases the risk in the pool. Also, the premium subsidies, delayed premium payments, and forced re-issuance of cancelled policies, put enormous pressure in insurers ability to make profit. Without profit, the health insurance companies that are the back bone of Obama Care will go bust. If this happens then the government will have to bail them out or take them over and thus create a social benefit for health. Keep an eye on Obama Care health insurers profits over the next few years. This will determine if the term "insurance" will continue to describe Obama Care. Until next time be careful out there and know your risks.

G. Kevin Nemith,  President of CNC Insurance Associates Inc. and the Small Business Insurance Center
Serving DE, MD, PA, VA, & NJ
www.cncinsurance.com
www.bizinsurancetv.org

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