Tuesday, November 12, 2013

Some thoughts on Obamacare enrollments

Word is that only 49,100 folks have signed up for health insurance since 1-Oct.  This is both good and bad news, depending on your perspective.

First, the good news.  Meager enrollment figures means savings for taxpayers.  Most assuredly, those signing up qualify for tax rebates and subsidies, and with fewer people electing to purchase health insurance, costs should be lower than expected.  That's good news for taxpayers.

Now, the bad news.  Meager enrollment figures could hit insurers’ bottom lines.  Also most assuredly, those signing up intend on using their health insurance.  Insurance companies were counting on the young and healthy (low users) to subsidize the old and sick (high users).  But it appears the former group is largely sitting on the sidelines.  If this trend continues, insurers could suffer losses.

Perhaps I should short some health insurance stock.  Any ideas on which ones?

1 comment:

  1. This is worthwhile: http://econlog.econlib.org/archives/2013/11/michael_cohens.html#comments