Two insurance companies have announced that they will no longer offer health care insurance to individuals in California next year. They will sell policies only to group insurance policies.
Obamacare says that individuals will be able to buy health insurance that covers existing sicknesses. This of course destroys the economics of health insurance.So, there is a solution for the companies: sell only group policies. That makes it hard for sick people to buy insurance. They have to be employed by a company that hires sick people. Most companies prefer to hire healthy people.
Obama promised this: “If you like your health insurance, keep it.” He and Pelosi forget this: “Of course, your existing company may decide not to sell it to you after we’re finished with the health insurance system.”
Nobody says that companies have to sell policies that are money-losers. So, the way for companies to protect themselves against rising claims is to pull out of the market. If other firms think they want the risk, they can keep selling these individual policies.
Obamacare was passed in order to make health care more affordable. Prices keep rising. It was passed to make insurance available to more people. That isn’t happening, either. The Obama administration has delayed implementing must of the program until 2015 — after Congressional elections in 2014.
This is called “kick the can.” It’s a very large can.