Moody’s downgrades health insurers due to Obamacare

Patrick Howley Political Reporter
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The credit rating agency Moody’s downgraded health insurers Thursday due to Obamacare.

Moody’s downgraded the credit outlook of health insurance companies from “stable” to “negative” due to insurance sector changes brought on by Obamacare and the impact that the law’s employer mandate will have on group plans held by small businesses.

“While all of these issues had been on our radar screen as we approached 2014, a new development and a key factor for the change in outlook is the unstable and evolving regulatory environment under which the sector is operating,” Moody’s said Thursday.

“Notably, new regulations and presidential announcements over the last several months with respect to the ACA have imposed operational changes well after product and pricing decisions had been finalized.”

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