Tuesday, January 19, 2016

Classic MIT Basket Weaving

Regarding the potential exit of United Healthcare from Obamacare:

UnitedHealth, the nation’s biggest health insurer, has been vocal with its concerns about the profitability of Obamacare plans. In November, it warned it was considering exiting the exchanges after suffering significant losses on policies.
Three months later, the policies continue to figure prominently in the company’s earnings. And while other insurers have left the marketplace, UnitedHealth would be the largest one to do so.
But even if it carried out the threat, it wouldn’t doom the health care law, said MIT economist Jonathan Gruber. “Not that by a long shot,” he said.
But it would mean higher premiums as well cost sharing for consumers, particularly in small markets where UnitedHealth is a big player, he and other experts said.
That wouldn’t affect those with subsidies—who make up the majority of the market—but for non-subsidized others it would be a double whammy of “fewer choices, and higher premiums,” Gruber said.
The italics are mine. Gruber claims to be an expert, yet he fails to notice that he just identified the adverse selection  problem.  Since he mentioned it before, one can  conclude that is is held hostage by the fraudulent denials that have been oi g on  in  MIT Basket Weaving for 45 years.  MIT ob ai s government  money for fraud, plain  and simple.  From he same article, here is the opposing view:

But Joel White, president of the advocacy group, the Council for Affordable Health Coverage, warned that insurance market tensions were at a breaking point.
Obamacare constraints on cost-cutting, paired with “less than robust enrollment,” have made for accelerating health care costs, he said. “It looks like the start of a death spiral.”
“No company can sustain the kinds of losses UHG is experiencing... and stay in this market long, nor should they,” White wrote in an email. “If policies aren’t adopted to ease the market rigidity, we would expect more to leave the exchange marketplace in 2017.”

Kanosian fraud, right in  front  of us. 

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