By Tom Quiner
Here’s what is happening in Iowa: health insurance companies are pulling out of the Iowa market. Thirteen companies have pulled out of the the market here in the past sixteen months.
These companies are victims of Obamacare, according to the CEO of the latest company to pull out of the market, Des Moines-based American Enterprise Group.
Here’s the problem, according to CEO, Michael Abbot:
“It’s a fairly predictable consequence of the regulation. The regulatory environment’s getting really complicated.”
One problem of Obamacare is that it limits profit margins for insurance companies. Is that a big deal? Yes, according to Mr. Abbott:
“The business is extremely expensive. We had very low margins, and it was very difficult to make margins on this business.”
As another company exits the market, another 110 people will lose their jobs. At the same time, consumers will find their competitive choices reduced once again.
Obamacare and Obamanomics are a failure. How many more examples do we need?