Why Insurers Continue to Shun Obamacare's Exchanges

As Obamacare's health insurance exchanges prepare to go live, there is a notable absence: Most of the biggest insurers are sitting on the sideline or just dipping their toe into the pool to check the temperature.

In this video, health-care analyst David Williamson gives two reasons investors should be applauding their lack of immediate participation. He also takes a closer look at the news coming out of the California exchange and explains WellPoint's pricing strategy and why consumers may not shop simply on price.

Obamacare will undoubtedly have far-reaching effects. The Motley Fool's new free report "Everything You Need to Know About Obamacare" lets you know how your health insurance, your taxes, and your portfolio will be affected. Click here to read more. 

Read/Post Comments (12) | Recommend This Article (3)

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  • Report this Comment On June 01, 2013, at 8:26 AM, deralynch wrote:

    I'm keeping a list of the insurance companies that fail to participate in the open exchanges. I plan to always banish them from my list of choices for healthcare. Don't you like the sound of that - list of choices!

  • Report this Comment On June 01, 2013, at 8:55 AM, Davmme wrote:

    The exchanges are designed to shield the federal gov from the biggest disasters in history. Blame the states, blame the insurance companies etc. The whoole thing is designed to fail and it will.

  • Report this Comment On June 01, 2013, at 9:00 AM, OLDUSNAVYWARRIOR wrote:

    "Don't you like the sound of that - list of choices! "

    GEEEEEZE that's funny......this fool thinks he's gonna have choices....what a rube. This new deal is about as clear as everything else the whitehouse is involved in!

  • Report this Comment On June 01, 2013, at 9:12 AM, sogole wrote:

    This is a very,very,very bad law.

  • Report this Comment On June 01, 2013, at 10:50 AM, tomjaneii wrote:

    Somewhere I read that in California not all the

    exchange members are insurance companies. If that's true, who is checking their financial strength to determine if they can pay their claims and be around for the long haul?

  • Report this Comment On June 01, 2013, at 12:20 PM, catmack wrote:

    The path to Single Payer.

    Get the Insurance Mafia to fail, slowly but surely.

    These bastards are what they are: Vultures.

  • Report this Comment On June 01, 2013, at 3:05 PM, stevema1 wrote:

    Just wait until people find out how free this health care is not.

    This is a disaster the only way to get out of it is to elect enough Senators on the right to make both houses veto proof. Once that is done the Republicans can repeal it and ovomit can do nothing about it.

    OR the house can just stop some of the funding, if everyone remembers this monster is funded right from the federal reserve.

  • Report this Comment On June 01, 2013, at 3:09 PM, pearlysweetcakes wrote:

    @catmack from your keyboard to gods ears.

  • Report this Comment On June 01, 2013, at 3:15 PM, pearlysweetcakes wrote:

    @stevema1 Democrats never said we were going to get free healtcare, that is just another one of those republican lies, get over it Steve healthcare reform is here to stay. Even if the republicans regain the senate they will not repeal the A.H.C.A.

  • Report this Comment On June 01, 2013, at 6:11 PM, docann wrote:

    Well, actually there are people who are going to get free medical care under Obamacare. They're the same people who are getting free health care now, because they are on welfare or they're illegal immigrants. Here in TX, illegals can get free schooling for their children, free medical and dental care, food stamps, free lunch and breakfast programs for schoolchildren, and housing vouchers. My daughter is an ER nurse, and these people use emergency rooms as their personal drs. Taxpayers foot the bills for all of these services, and we will continue to do so. When people's health care premiums go through the roof because nobody in the government has figured out how this fiasco is going to be managed, then some people might wake up. BTW, I'm not a Republican, but I am an old person on Medicare, and I can tell you I'm really angry at the incompetency of our government.

  • Report this Comment On June 01, 2013, at 10:11 PM, VRSEFgold wrote:

    Schadenfreude America!

  • Report this Comment On June 01, 2013, at 11:33 PM, healthyinMN wrote:

    There is only one reason why Insurance Carriers are not rushing to sell their wares on the Healthcare Exchanges....they are mandated to sell policies to individuals at the same low cost they sell to employers.

    They sell at a low price to employers, because they are able to cover large numbers of people.

    They then goudge those who buy as individuals, which is where they make their billions.

    Individuals who buy directly from them pay for the risk they take when they insure say 10,000 employees from one company. Think about it, they are not able to discriminate for pre-existing conditions, when they sell to an employer.

    Insurance companies stand to lose in the Exchange Marketplace

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