New Study Proves Obamacare Not Collapsing, Actually Stabilizing
So about that Obamacare death spiral collapse apocalypse. Turns out it’s not happening – at all. So why does Donald Trump keep saying it you ask? Well, because he lies a lot.
According to a new analysis from the Kaiser Family Foundation, the Obamacare marketplace is stabilizing.
Insurer profits are up for companies in the Obamacare exchanges, a key sign the market is stabilizing.
The study also found that insurers are paying out lower claims compared to prior years, again indicating that the Obamacare market is not anywhere near collapse. It also found that the enrollees do not appear to be sicker than previous years.
“These new data offer more evidence that the individual market has been stabilizing and insurers are regaining profitability,” the report’s authors wrote.
As you can see in the graph below, insurers are collecting more money than they are paying out and that spread is growing.
Source: Kaiser Family Foundation study
The growing spread between what customers are paying for insurance and the amount insurance companies are paying out for claims is a key sign that the Obamacare market is stabilizing.
The Kaiser report also confirmed a recent report by the Congressional Budget Office which found that Obamacare’s exchanges would become stable.
“Early results from 2017 suggest the individual market is stabilizing and insurers in this market are regaining profitability. Insurer financial results show no sign of a market collapse. First quarter premium and claims data from 2017 support the notion that 2017 premium increases were necessary as a one-time market correction to adjust for a sicker-than-expected risk pool,” the Kaiser report said.
[image via screenshot]
