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Sunday, November 15, 2015

Banging my head on my desk...again...

Like Henry, I despair that our good politicians will never learn.  Allowing carriers to rescind the legally mandated policy cancellations is an actuarial disaster.

Pricing in the exchanges is predicated on the assumption that healthy people are going to enroll along with the sick.  If healthy people can keep a lower-cost plan, they will.  The population in the guaranteed issued ACA compliant plans will have an even higher average claims level than originally projected.

Yes, it's for a limited period of time.  But it's going to do major damage until things stabilize...and it's like hitting a bell every time you change the basic rules.  It takes a long time before the vibrations die out.

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