Obamacare Is Imploding…Here’s How to Profit
By Justin Spittler
Obamacare looks like it’s about to collapse…
Six years ago, President Obama passed the Patient Protection and Affordable Care Act. This controversial law (simply called “Obamacare”) was supposed to make it easier and cheaper for Americans to buy health insurance.
But, as you probably know, it’s done the exact opposite. And its downfall is opening up massive money-making opportunities that we can take advantage of today…
• E.B. Tucker, editor of The Casey Report, says Obamacare has turned the health care world upside down…
He wrote in last month’s issue of The Casey Report:
[Obamacare] made insurance more expensive, going to the doctor more complicated, and created bizarre economic incentives that have nothing to do with delivering health care to the people that need it.
E.B. says it’s only getting worse, too:
Earlier this year, Pennsylvania-based insurer Highmark announced a 41% price increase for 2017 health insurance plans. It’s one of the state’s largest health insurance companies…
The story is the same across the country. Blue Cross Blue Shield of Montana announced a 62% price increase for 2017 rates. In 2016, it implemented a 22% increase. Anthem Inc. will raise rates on Connecticut customers by 27% next year. The list goes on…
Soaring insurance costs are a big problem if you’re buying health insurance. If you’re selling it, however, it may seem like a great business at first glance…
• Thanks to Obamacare, profits for health insurance companies have hit record highs…
Their stock prices have soared. And there’s less competition than ever before.
What’s more, Obamacare is nearly impossible to escape. Under Obamacare, everyone in the U.S. must prove they have health coverage through a health insurance plan.
If a person is ineligible for government coverage like Medicare or Medicaid, they must buy a private health insurance policy.
If you don’t buy insurance, you have to pay a fine. This has forced millions of Americans to buy insurance.
You can see in the chart below that 80% of Americans had health insurance in 2010. Today, more than 90% of Americans have coverage, which is an all-time high.
It may seem like a great time to be a health insurance company. But E.B. says the good times are coming to an end.
• Obamacare is backfiring…
CNNMoney reported in August:
There’s no doubt Obamacare is suffering a major shakeup three years after the exchanges opened. Those who’ve signed up for coverage are sicker and costlier than expected, while too many healthier Americans are opting to pay a penalty rather than a premium.
This might not surprise you. After all, Casey readers know that the government never fixes problems. It only creates them or makes them bigger.
• The health insurance industry is starting to take heavy losses…
CNNMoney reported last month:
There’s no question many insurers are losing big money on Obamacare. Costs exceeded income by 5% in 2014, and that figure doubled the following year, according to McKinsey’s Center for U.S. Health System Reform. Losses are expected to grow this year.
Only 30% of insurers ran profitable individual divisions in 2014. That share slipped to about a quarter last year, according to McKinsey.
This is why so many insurers have jacked up premiums. They’re trying to stop the bleeding.
If premiums continue to rise, many more Americans could opt out of insurance plans. And that would only create bigger problems for the industry.
• Several giant insurers are pulling out of Obamacare…
CNNMoney reported last month:
Aetna (AET) is pulling out of 11 of the 15 states where it offers Obamacare policies after losing $430 million, the company announced Monday. Its move follows downsizings by UnitedHealthcare (UNH), which will operate in only three states in 2017, and Humana (HUM), which is withdrawing from nearly 1,200 counties in eight states.
Aetna, UnitedHeathcare, and Humana are three of America’s largest health insurers. But they certainly aren’t the only insurance companies in serious trouble. Business Insider reported this morning:
In a release on Friday, Minnesota Commerce Commissioner Mike Rothman, who oversees the exchanges on which people in Minnesota not receiving insurance through their employer or government programs [like Medicare and Medicaid], said premiums will rise as much as 67% for some insurers.
According to the release, Rothman said the exchanges are “very near collapse” as Blue Cross Blue Shield pulled out of the market, citing large financial losses. This exit is indicative of the mood of the other insurers, who Rothman described as “prepared to exit this market.”
• Casey Report readers stand to profit from the collapse of Obamacare…
Last month, E.B. shorted one of America’s biggest healthcare companies.
[Shorting is betting that a stock will fall. If you’ve never shorted a stock, we encourage you to read Friday’s Dispatch. In it, E.B. explains how to short stocks…what makes for a good short…and why you should be shorting stocks now.]
This company’s stock has more than quadrupled since 2010. But, like other insurers, this company’s good times are about to end.
Over the past two years, the company’s already lost $1 billion because of Obamacare. Yet, its stock is trading at a price-to-earnings (PE) ratio of 21.7. That’s almost double its five-year average. (The higher the PE ratio, the more expensive the stock.)
According to E.B., this stock could plunge 50% or more as Obamacare unravels. You can get in on this trade by signing up for The Casey Report. But, before you do, watch this eye-opening presentation.
It talks about a major financial crisis on the horizon. As you’ll see, this coming crisis could cause the average U.S. stock to fall 50% or more. Weak companies, like the health insurer that E.B.’s shorting, could fall even further.
The good news is that you can turn this coming crisis into a major money-making opportunity. Watch this FREE video to learn how.
How to Profit from “Internet 3.0”
Editor’s note: Today, instead of our usual Chart of the Day, we’re sharing one of the most popular money-making ideas from our good friends over at the Palm Beach Research Group. As you’ll see, the “blockchain” revolution is taking over the tech world…and there are huge profits to be made if you get in now…
“The next phases of the internet will be built on the blockchain…”
The blockchain is a revolutionary technology that’s changing the world at an astonishing pace. It’s nothing more than a digital ledger. But this ledger is decentralized, public, and “unhackable.”
Decentralization is the source of the ledger’s integrity. Millions (and soon billions) of connected devices around the globe keep it accurate. Its reliability is so solid, some of the largest names in global finance and business are investing billions into the technology…
• Wall Street “megabank” JPMorgan is investing $9 billion in the blockchain.
• Global titans Credit Suisse, Reuters, and HSBC are just a few of the many massive firms investing in the blockchain right now.
• Within five years, two-thirds of all asset managers worldwide will use the blockchain in some way.
Teeka Tiwari, editor of The Palm Beach Letter, says today’s new blockchain-based companies will become “the IBMs, eBays, and Amazons of tomorrow.”
You can learn about this digital revolution by clicking the five-minute video below. The window to make money in “ground-floor” blockchain investments is closing fast. To take advantage of this incredible opportunity today, click here.