The Washington Examiner is reporting that Moody’s has downgraded the entire health insurance industry, changing the outlook for health insurers from “stable” to “negative.” The reason given for this decision is that ObamaCare has failed to enroll enough younger healthier participants. This is a clear indication that the financial analysts recognize that ObamaCare has put the entire health insurance industry into a death spiral. In addition, the arbitrary decision by the Obama administration to change regulations after insurance carriers had already set prices has made the situation worse.
This also includes some wording that is destined to scare investors:
Moody’s also said it was “unclear” whether the impact of the new tax on health insurance policies was properly accounted for by insurers in their 2014 forecasts.
In other words, it looks bad and it might be worse than it looks. This is proof that ObamaCare is collapsing even faster than I thought possible even a couple of weeks ago. It will be interesting to see how the financial markets respond. If they believe this report, then the effect on the entire health insurance industry will be instant and obvious.
I must point out that the insurance industry is the cornerstone of our economy and if we start having insolvency issues with regard to health insurance carriers it will be a very big deal. When you combine this with the other troubling trends in our economy it is hard to be an optimist.
No amount of spin by the liberal left or the main stream media can fix this. It is increasingly obvious that ObamaCare is a complete and total disaster. The sad reality is that politicians rarely make difficult decisions until faced with imminent disaster. Well wecome imminent disaster. If things continue as they are, they will soon have no choice but to take some kind of action. This is now impossible to predict. But, it is sure a blue Moody’s in Washington today.
TDM