Skip to main content
  1. News
  2. Top News

Insurance industry 2014 forecast downgraded to negative due to ObamaCare

See also

The calamity of ObamaCare has caused even more distress for health insurers as a report from Moody’s, the credit rating agency, downgraded its position from stable to negative Thursday.

“While we’ve had industry risks from regulatory changes on our radar for a while, the ongoing unstable and evolving environment is a key factor for our outlook change,” said Moody’s Senior Vice President Stephen Zaharuk in his statement today.

Indicating the 2014 forecast for insurance industry earnings would be at least 2 percent less, Zaharuk stated “the past few months have seen new regulations and announcements that impose operational changes well after product and pricing decisions were finalized.”

The Hill a publication of Congress, first reported the downgrade.

A major cause for this damaging downgrade is due to the sluggish enrollment of young Americans into Obamacare, the Moody's report sited.

“Uncertainty over the demographics of those enrolling in individual products through the exchanges is a key factor in Moody’s outlook change,” the Moody’s report explained.

ObamaCare was sold to the American people by President Barack Obama and the Democratic led Congress with a needed prerequisite of 40 percent of the enrollees being between the ages of 18 and 34, while at the same time allowing most 18-24 year-olds to have their coverage included with their parent’s plans.

The federal government’s own figures show less than 24 percent of enrollees are under age 35.

Other concerns in the report included grave concern that insurers’ premium calculations would most likely not be sufficient to cover the new assessment tax for this year.

“These changing dynamics will have an uneven effect on insurers, as the impact of these factors will vary by market segment and geography,” the report stated. “Moody’s view continues to be that the larger and more diversified insurers will be better positioned, both financially and strategically, to meet the challenges facing the sector.”

Advertisement

News

  • Al Qaeda video surfaces
    A video of an Al Qaeda meeting surfaces, concealed identities are raising suspicions
    Video
    Watch Video
  • Boston Marathon
    Boston cops shut down Boylston street after finding suspicious, unattended backpacks
    Top News
  • Death penalty for hate crime?
    Actions by the anti-Semitic gunman are being condemned by the unlikeliest of groups
    Crime News
  • New York gun control
    As many as one million New Yorkers are ready to disregard the state's new gun laws
    Headlines
  • Korean ferry capsizes
    Hundreds of passengers are missing after a ferry sinks off the South Korean coast
    World News
  • NYPD ends surveillance on Muslims
    The NYPD will end surveillance programs against Muslims in their own communities
    Video
    Watch Video

Related Videos:

  • Domino's Pizza introduces new 'Specialty Chicken' menu item
    <div class="video-info" data-id="518196835" data-param-name="playList" data-provider="5min" data-url="http://pshared.5min.com/Scripts/PlayerSeed.js?sid=1304&width=480&height=401&playList=518196835&autoStart=true"></div>
  • Statue liberty and American flag
    <iframe width="560" height="315" src="//www.youtube.com/embed/Lq3AoHZrACM?VQ=HD720&amp;autoplay=1"></iframe>
  • A little boy is found inside a claw machine
    <div class="video-info" data-id="518198080" data-param-name="playList" data-provider="5min" data-url="http://pshared.5min.com/Scripts/PlayerSeed.js?sid=1304&width=480&height=401&playList=518198080&autoStart=true"></div>

User login

Log in
Sign in with your email and password. Or reset your password.
Write for us
Interested in becoming an Examiner and sharing your experience and passion? We're always looking for quality writers. Find out more about Examiner.com and apply today!