Most Obamacare exchanges are already rather limited in the number of insurance providers. Minnesota’s now has one less
(Daily Caller) The largest insurer with the lowest premium rates on Minnesota’s Obamacare exchange is dropping out because the government health-exchange is unsustainable, the company announced Tuesday.
PreferredOne Health Insurance told MNsure, the state-run exchange, Tuesday morning that it would not continue to offer its popular insurance plans on the marketplace in 2015. It’s “purely a business decision,†spokesman Steve Peterson told KSTP-TV. The company is losing money on administrative costs for plans offered on the bureaucratic and glitchy government exchange.
Part of the problem, according to PreferredOne, is that MNsure hasn’t even been able to verify its customers’ information. PreferredOne said that some of its customers have turned out not to even live in Minnesota.
Fifty nine percent of the signups were through PrefferredOne. There are four other companies, all of which are much more expensive.
The Lonely Conservative has more news on the super wonderful most awesome majesty that is Obamacare.
It’s not like we didn’t tell them so!
The liberals don’t know anything about economics; if they did, they wouldn’t be liberals! They told us that competition for all of these new customers would drive down prices, without recognizing that they killed competition.
In a truly free market, businesses compete with each other for customers, but also with the concept that the customer can choose not to buy at all, if he finds something priced more than he is willing to pay. Obaminablecare removes the option not to buy at all, which means that an competition between businesses for those insurance policies is at a higher cost. You can see the very obvious example of automobile insurance, which is terribly overpriced, because drivers have no choice but to buy it.
In this case, the lowest cost insurer couldn’t make money. Rather than raise rates to what would be necessary to make a profit, they’re dropping out. It would seem that they weren’t very good in the business in the first place.
Dana,
Good points. I might also add that the government wants doctor cost to go down, but then set the price for what we can charge and will prosecute us for delivering free care. In my town, the hospitals are all going broke. So we are getting less medical care, just like the socialized medical schemes desire.