came as a surprise to many. It shouldn't have. Everything that's happened now was predicted by the law's critics years ago.
Aetna CEO Mark Bertolini said that this was supposed to be a break-even year for its ObamaCare business. Instead, the company has already lost $200 million, which it expect that to hit $320 million before the year it out. He said the company was abandoning plans to expand into five other states and is reviewing whether to stay in the 15 states where Aetna (AET) current sells ObamaCare plans.
Aetna's announcement follows UnitedHealth Group's (UNH) decision to leave most ObamaCare markets, Humana's (HUM) decision to drop out of some, Blue Cross Blue Shield's announcement that it was quitting the individual market in Minnesota, and the failure of most of the 23 government-created insurance co-ops. And it follows news that insurance companies are putting in for double-digit rate hikes that in some cases top 60%, and news that the Congressional Budget Office has sharply downgraded its long-term enrollment forecast for the exchanges.
Who could have envisioned such problems? Not ObamaCare backers. They were endlessly promising that the law would create vibrant, highly competitive markets that would lower the cost of insurance.
Critics, however, were spot on. They said that, despite the individual mandate, ObamaCare wouldn't attract enough young and healthy people to keep premiums down.
Read more:
ObamaCare Is Failing Exactly The Way Critics Said It Would | Stock News & Stock Market Analysis - IBD
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