June 14, 2014
Obamacare is looking better than ever for the biggest insurance companies, and they’re prioritizing boosted earnings over expanding Obamacare coverage, according to a memo from Moody’s Investor Service.
Moody’s is optimistic about insurers’ credit ratings, noting that more insurers are expected to join Obamacare exchanges or offer more plans — and fewer enrollees for each insurer is likely to be beneficial, given early reports that Obamacare customers’ are sicker and costlier to insure than other insurance pools.
“Since the policy-buying population has an unknown medical status and potentially unfavorable risk characteristics, less membership, and therefore less risk, is credit positive,” Moody’s concluded.
And insurers aren’t prioritizing actually expanding health coverage to many more people, according to the report. Large insurers are boosting their premiums after generally losing money or breaking even with their first year of customers, according to the report.
This article was posted: Tuesday, June 24, 2014 at 11:02 am