The impacts of Obamacare – Health Net, one of the biggest boosters of ACA (because they stand to get billions in subsidies) have cut commissions to 2% because they just realized that they are going to start losing a lot of money.
Could you run a business on a 2% margin? Thanks, Health Net both for helping destroy the Healthcare system and then for taking it out on Insurance Agents.
HealthNet is positioned to increase revenue by 50% over the next two to four years from Obamacare provisions, Rigg says, bringing sales up to the $16 billion to $17 billion range by 2015 to 2016. That could mean a share price of $40 to $50.
HealthNet is poised to take part in California’s exchange, as well as benefit from Medicaid expansion and take part in the state’s plans to offer dual coverage for those eligible for both Medicaid and Medicare.
But – it isn’t quite working out as expected. Healthy people aren’t signing up.
Meanwhile, the insurers who conspired with Democrats to pass the law have figured out who’s their daddy. Jay Gellert, the CEO of the Medicaid contractor Health Net, complained the other day that this newspaper “has decided that they have a jihad on the Affordable Care Act.” That’s an unfortunate metaphor, but we’ll plead guilty to having predicted the problems that now beset the law. Mr. Gellert is a wholly owned HHS subsidiary who knows he’ll be punished if he doesn’t salute.