Scott Gottlieb on How Obamacare’s Bad Math Will Force Insurers To Downgrade Earnings
(original source Forbes)
Some of the biggest health insurers are baking faulty math into their earnings forecasts by factoring in payments from Uncle Sam that may never materialize.
Two events this week could force a reckoning between their wishful arithmetic and common auditing standards – forcing insures to downgrade their earnings.
At issue are risk-sharing arrangements contained in Obamacare that are meant to help offset losses insures might take as the program gets started. Collectively, these programs have become known as “the three Rs” because of their three elements.
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