Most health care insurance companies are publicly traded. As such, they are required to publicly disclose on a regular basis certain financial and market information.
Humana Inc. says that the mix of enrollees in their plans was worse than expected meaning that the underlying assumption that young, healthy enrollees would subsidize older, sicker patients was skewed to a money losing position.
Because of Dodd-Frank, officers of publicly traded companies are held personally responsible for certain aspects of the disclosures and performance of their companies.
Humana released its projections in a U.S. securities filing ahead of meetings next week with investors and analysts. Despite the negative projections about the exchange enrollment, Humana backed its 2014 earnings forecast of $7.25 to $7.75 per share.
The Obama administration has been trying every possible political move to give the appearance that Obamacare has been successful. But sooner or later, those companies that offer plans on the exchanges will have to disclose just how well or poorly they have performed.
One wonders if the CEOs and CFOs of those companies expect the Securities and Exchange Commission to turn a blind eye to any failure to criticize Obamacare, or whether those senior officers will decide that exposure to felony charges is enough to tell their shareholders just how poorly the entire experience has been.
We’ll see in the next quarterly disclosures, I suspect.