By the middle of 2010, the CEO’s of publicly traded insurance companies must have known that up to tens of millions of their customers would be canceled by their companies. Arguably, the willful concealment of this information affected the price of their stock. Was their silence about material facts affecting share prices and their own compensation permissible under SEC disclosure rules? We don’t know. Just asking.EPASEZ:
There were SO MANY public warnings of this from congress, insurance analysts, AND companies but the rush to believe in Obama crowded out any other reasonable narrative.
PUBLIC WARNINGS - that makes willful concealment impossible. We have the video of Ryan, and Cantor right here.
Right now the very same warnings are being sounded about employer provided insurance, whose market, PS, will be active 2 weeks before the 2014 elections.
The warnings are coming from congress, newspapers, and analysts.
They are public.
IMHO, the insurance companies BELIEVED they were being handed a forced market of 30-40 million new customers. Who knows, maybe in the end they will be? It's mandated by law. But it seems right now as if there may have been a gross misjudgment of the market, and people will not buy what is too expensive, and stuffed with unneeded and unwanted services.
What will happen if this same process plays out across the summer, and tens-hundreds of millions are ejected from coverage, or suddenly must pay 100-300% more from employers who are facing much more expensive policies, because Obamacare mandates it?
There is nothing hiding here.
Every one of us can play this wargame out.
Each one of us can sit in the chair of the CEO of United Healthcare and face a market where the government mandates the design our product and we must fix the cost. We hand that cost to a business we have been in partnership with for years, probably. That partner/client has to decide HOW they will handle it.
Will they increase the fees of employees? Will they pay the fine and get out from under the entire issue?
Will they fire people to get under 50 employees? Will they make thousands and hundred of thousands contractors, or part time?
If I am CEO of United, what DO I tell the stockholders?
2 comments:
UK Daily Mail: 3 20 year old programmers build working obamacare website just days (and it can already do more than the government's one)
My spouse worked for United Healthcare UBH division and was let go along with 85 other middle management personnel the same day all in order to cut costs to implement the ACA - 0bamacare. They (UHC) have cut 100's of employees and that number will soon be in the thousands.
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