Posted on 08/01/2011 5:39:56 PM PDT by Kaslin
One of the most remarkable outcomes of ObamaCare is how the stock market has treated commercial health plans, which have rallied significantly.
In the two years between the 2008 and 2010 elections, the Morgan Stanley Healthcare Payors' Index rallied 26% (annualized), vs. only 9% for the S&P 500.
Outperformance increased even more since the mid-term election. Investors believe that the government guarantee of millions of customers to health plans will lead to profits. Unfortunately, this optimism is likely unfounded.
ObamaCare distributes federal grants to states that encourage their insurance departments to increase power of prior approval of premium increases.
And the coming wave of political interference will threaten health plans' very solvency. We already know that such laws do not keep a lid on health costs.
In Massachusetts, the 2006 health reform imposed a "mandate" to carry health insurance, but also to draconian limits on premium hikes.
Using the power that his counterparts in many states might soon enjoy, the state's Insurance Commissioner refused 235 of 274 requested rate hikes for April 2010, and demanded that plans rebate premiums that had already been paid.
But medical costs in Massachusetts increased faster after the new regulations than before.
Massachusetts' health plans are hemorrhaging cash, and a senior regulator has described the mess as a "train wreck."
(Excerpt) Read more at investors.com ...
Call it a mess. Call it a train wreck. No matter what you call it, it comes from democrats. America made a terrible mistake when it elected Obama. We are a suffering country because Obama has lessened us by wealth redistribution. You feel the effects of it because you have been made poorer, although how it was done is hidden from your eyes.
duh!
This has been the point of Obamacare from the begining!
Read his book!
He HATES capitalism, American industry, and the Constitution!
How else do you maximize the portion of the citizenry dependent on handouts from the government?
It is socialism and marxism, designed to ensure power and control!
Folks need to think about the fact that if ObamaCare drives insurance companies out of business, what happens when ObamaCare fails? There won’t be anything, if there are no insurance companies. Planned that way? I think so.
The list, ping
Let me know if you would like to be on or off the ping list
Why do you think Express Scripts bought out the scandal plagued Medco..$29 Bill. ES provides most of the RX mail orders for retired Military on Tricare. And Tricare is adminined out of Medicare.
When Walgreen’s contract was up with ES, they offered Wags half pennies on the $, instead of the pennies it is now getting. Wags said NO thanks, get lost. As each of the big chains contracts come up same thing will happen. And ES will then be the sole provider of TRICARE RX. And you won’t know from one order to the next which drug you will be getting from which manufacture. And they are a real WITCH to deal with if you have to go off formulary and for name brands.
There are already shortages in things like Trimeterine...diazide (generic) water pills. Many high blood pressure patients are put on. They sub Merzide, which does NOT work as well even at double the dose. Harder on your kidney’s at the higher dose.
Working as intended.
The only “silver lining” on this very black cloud is that we might get to see AARP wiped out by its own bullet.
My blood pressure med just went up $5.00....I was wondering why. Guess I need to have my doctor double the dose and stock up for awhile.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.