Monday, January 27, 2014

WashingtonPost: "Moody’s just downgraded the health insurance industry." Why? One reason was Obamacare

WashingtonPost: "Moody’s just downgraded the health insurance industry." Why? One reason was Obamacare

S&P automatic default rate for healthcare industry: Moderate Risk (3). 


Washington Post: Stephen Zaharuk, Senior VP at Moodys: "For most insurance companies, the individual business has been a small part of their portfolio. It's not going to bankrupt the Wellpoints and Uniteds of the world. We also don’t think they’re going to make money on this, and they could possibly lose money on this. It is a small part of their business, and it lowers their credit outlook. Obviously as news trickles out about Affordable Care Act enrollment, and if we get positive enrollment that younger people are signing up, that takes off a bit of the pressure. And if we start seeing more robust employment, that will help too."

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