I suspect that the health insurers have done the math and discovered to their great surprise that the intent of Obamacare is to wipe them out as corporations, and replace them with the government.
And, with the assumption that they will follow the communist rule of selling Obama and the Democrats the weapons they will use to destroy the insurers.
That’s the trouble with assuming others are “stupid capitalists”. Because to have become wealthy as capitalists, almost by definition they are not stupid, at least as far as their own well being is concerned.
So, one after another, they are pulling the essential corporate support members out from beneath Obamacare, and causing immense pain among those who had previously supported it.
It’s downright Pavlovian. Support Obamacare and you will be terribly punished by it. Oppose it and it may be destroyed, and things will pretty much go back to the way they were before. With one choice, pain, and the other choice, relief.
Insurance companies are providing insurance under Obamacare, not the government. Insurance industry people wrote the legislation.
You can see in the article how this particular insurance company was “at the table” all along promoting Obamacare, leading the charge so to speak, then backed out at the end and created a new subsidiary to participate in the exchange.
If you think about it, once the exchanges are up, insurance companies that are outside of the exchange - can cancel a ton of policies that they don’t make much profit on - and those people “will be able to go to the exchange and buy”.
Now, the article and the comments after describe the subsidiary that will participate in the exchange - it’s going to be able to cut corners like crazy on how much it pays out. But the theory is to get people signed up and paying premiums every month that “can’t get” insurance. Basically, since these people can’t afford much insurance, or perhaps don’t perceive much of a need for themselves, it has to have the option of some low-priced insurance. This will be cheezy ripoff insurance that is cheap because it doesn’t pay much.
This is where so many are confused, IMHO - Obamacare is simply a more heavily regulated insurance market; the government is not functioning as an insurance company.
It’s all aimed at getting everyone to pay as much as possible for healthcare, and at the same time creating a very regulated market where rationing can happen for “the sheeple”. The poor and middle class alike will have as much money sucked out of them as possible. When it comes time for care, the poor will get el cheapo care, the middle class... well... as cheap as they can get away with... the rich... rolls royce care that the little people never see.
If any insurance companies (like the smaller ones) find financial difficulty and go bankrupt, their customers would, of course, be forced over to a surviving bigger company.
“Nationalization” really means a business monopoly; this is just a step along the way, a step that sets up for further “consolidation” and control.
This may be a brilliant strategic move.. Allow the competitors pick up the early low income, existing health issues insured, only to rejoin later, or sell from the sidelines to the wealthier Cadillac plans..
Once the folks that needed Obamacare are out of the way, they probably won’t change providers or the sick ones won’t risk changing, they can cherry pick the best payers..