tag:blogger.com,1999:blog-8512362.post2227094179439525876..comments2024-03-10T13:59:19.230-04:00Comments on xpostfactoid: In ACA exchanges, the key word is "exchange"Andrew Sprunghttp://www.blogger.com/profile/17601269968798865106noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-8512362.post-59640970761577053732015-11-20T06:43:26.249-05:002015-11-20T06:43:26.249-05:00As someone who works in an insurance agency, let m...As someone who works in an insurance agency, let me offer an observation. The ACA's main method for controlling insurance costs on the to <br />encourage participants to shop the insurance companies every year. This is a more evolved version of what the earlier Clinton plan called "managed competition." Now it is an insurance version of Priceline.com.<br /><br />It is not nirvana though. There is a cost to participants in changing networks every year. There is an ugly pattern in many states when a new insurance company barrels in with low rates, and then in year 2 they have huge claims losses and so depart the exchanges. Some of these companies will need bailouts if they have inadequate reserves.<br /><br />Eventually there might be no insurance companies even wanting to be on the exchanges. I have no love for the private insurers, but still that will be a big problem.<br /><br />I fear that this kind of business climate may lead to a situation where no major insurance companies even want to be in the exchanges.<br />bob.hertzhttps://www.blogger.com/profile/09686373408419885558noreply@blogger.com