AUTHOR: TOWNE SCHERER.COM 6/16/2016: Towne Scherer Private Wealth Management BLOG:
Healthcare Getting Sick
The largest insurer in the U.S., UnitedHealth Group, recently announced that it would be vacating a majority of the 34 states it operates in beginning in 2017, according to a 5/15/2015 story in The Motley Fool. The story goes on to suggest that in 2017 the lack of competition in Obamacare will motivate health care companies to leave markets or increase premiums. Worst of all, it appears that insurer rate hike requests aren’t going to ebb past 2017; Rather, insurers will need to rapidly accelerate premiums in order to sustain their Obamacare plans. Apparently, healthcare is getting sick.
Jobs…Not So Positive
The U.S. economy added a disappointing 38,000 positions in April which could influence the Fed’s decision on rates according to a 6/4/2016 report in Forbes. But all this weakness is in contrast with recent strength in housing and consumer spending, making it difficult to see where the economy really stands. Further, pundits have voiced concerns over a potential increase in the reserve rate of banks which some see as seeds for a correction in the real estate market. Nevertheless, according to the Labor Participation Rate, a record 94,708,000 people are not in the labor force as reported by Brietbart, 3/6/2016, making any positive economic news feel….not so positive.
Worst Mass Shooting in U.S. History
In the worst mass shooting in U.S. history, 50 patrons of an Orlando nightclub were gunned down by a lone gunman after a three hour hostage situation, reports a 6/13/2016 Deadline/Hollywood article. Omar Mateen, killed in a shootout with police, has been identified as the gunman. Mateen who had been previously interviewed by the FBI twice for suspicious behavior, called 911 and pledged his allegiance to the Islamic State and yelled Allah Akbar (God is Greater) during the attack. Although ISIS has claimed responsibility for the shooting, President Obama has characterized the attack as “an act of terror and an act of hate,” with no mention of the Islamic state or whether you can keep your healthcare plan or not. Where have we heard this before?
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The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.