Health insurers losing money as Obamacare takes hold

McKinsey and Company: Between 2013 and 2014 absolute enrollment and revenue grew by 17 million lives and $86 billion respectively. But payors lost 2.5 billion in 2014.

Hence the premium increases in 2015 and now 2016. Obamacare is in a spiral, it is adapting by adverse selection.  Since the system operates at a loss, the Medicaid expansion states will fare worse off, the productive and healthy moving to Texas; poor and sick to California.

California politicians think this is a permanent and profitable business.  Here they plan a marketing plan to attract more poor and sick:

CalWatch: Officials have set their sights on increasing enrollment by upping the public profile of the state exchange, which has struggled in years past to fully connect with potential customers. “There are 750,000 California residents without insurance that are eligible for Covered California,” according to CBS San Diego, with an estimated 2.2 million uninsured Californians eligible for subsidized coverage through either Covered California or Medi-Cal. According to the Los Angeles Times, the total population of uninsured Californians sat at around 4 million. “Of those, officials estimate that 1.4 million would qualify for Medi-Cal, the state’s Medicaid program for low-income residents.”

But California is building business based on the ability of DC to take taxes from Texas. That is an impossibility! Texas will do what it takes, including secession, to avoid subsidizing California socialism.  Kanosians are ignorant boneheads.