In fairness young people pick weekend beer over lots of things, not just Obamacare. But point made. Costs go up and up. More and more young, healthy people opt out. The sicker the Obamacare population is. And then eventually insurance singularity, implosion.
This is what is known as a death spiral in the insurance underwriting world.
Of course if the pols “get the regulation right” maybe the insurance companies that are pulling out now might come back, they say.
Stay alert taxpayers.
Healthier people will avoid buying Affordable Care Act health insurance plans as premiums climb, threatening the stability of the market, Aetna Inc. Chief Executive Officer Mark Bertolini said.
“As the rates rise, the healthier people pull out because the out-of-pocket costs aren’t worth it,” Bertolini said at Bloomberg’s The Year Ahead Summit in New York. “Young people can do the math. Gas for the car, beer on Fridays and Saturdays, health insurance.”
Premiums for health plans sold to individuals under the ACA, known as Obamacare, are going up by about 25 percent on average for next year. Bertolini said that as costs rise, more individuals will decide not to buy health plans. That’ll push premiums even higher, unless a new president and lawmakers can find fixes for the new markets created by the 2010 health law.