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Obamacare kind of works, but the bad news? Death spirals are real

To read the full article in TheStreet, click here.

PA healthcare expert, Bret Schroeder, is quoted in an article in TheStreet. The article discusses the push for more consumer driven healthcare and how insurers are addressing this.

Commenting on this topic, Bret states: The healthy people are not going to choose these robust plans.  An Aetna style, or a robust style that's not a bare bones plan, it's got some robust features [and] there may be a premise here that says there's no market for that type of an offering. Period. So you've got these big players offering that stuff in the marketplace, but what we're seeing is that there's fundamentally not market for that.”

Bret added: It's a very, very fluid market.  You [the insurance company] don't have a better customer experience that's going to keep a person there, you don't pay claims any faster.  What is your value? The switching cost is next to zero.”

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Bret concludes: I liken it to the classic case story of, is it better to fill a movie theater at $3 a ticket than a half empty theater at $5.  To me, to win, it has got to be a volume game.”



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