this will only happen to ins companies if they let it. they don't have to write policies in states where they can't get rates to an affordable level. they already did this in Massachusetts. also, it would be hard to convince me that a company will go out of business when every person in the country is required to use their service or face the IRS and possible jail time.
Or pay a fine....
Paying the fine is cheaper then buying insurance.
you think enough people will pay the fine to put insurance companies out of business?
That's not how it will happen.
Insurance companies are only required to keep enough liquid assets to pay all their claims up to a specific amount. Obama will require they keep enough cash to pay 80% which is impossible.
Soon all of their cash will be tied up waiting for a claim to come in instead of paying for everything else that companies need to stay in business. Add to that the removal of pre-existing conditions.....
Most insurance adjusters feel they'll be out of business in around 2 years.
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