Business is supposed to be Trump's strong point, and yet Trump spouts not only drivel but lies and distortions on the healthcare business. He doesn't know that the whole industry is in crisis because of Obamacare. About 2/3rds of insurers are asking for $2.9 billion in help to make up for losses. Yet Trump claims they are raking in the profits. From the CNN debate in Houston Thursday:
Donald Trump: “The insurance companies are making a fortune on every single thing they do. . . . Right now they are making a fortune. . . . I know the insurance companies. They’re friends of mine. The top guys they’re friends of mine. . . . The insurance companies are making an absolute fortune.” (1 hour mark)One would think that was right given the individual mandate (which Trump likes) which is supposed to require every tax payer to have health insurance. But, that's not true. Healthcare insurers are on the ropes. Even some big players like Moda have had to drop out of the business in certain states and have required big influxes of parent company cash to be allowed to continue to offer individual coverage in Oregon and Alaska
In Oregon only two providers made a profit in 2014. Two. Even Kaiser had a small loss. The biggest profit margin: 2%.
Nationally, healthcare insurers are in similar trouble.
That's why defunding automatic reimbursement from taxpayer money that Marco Rubio talked about stopping in the last debate has had such dramatic consequences. It may very well bring Obamacare down because it will bankrupt or severely cripple so many healthcare insurers.
Donald Trump knows nothing about the health insurance business. He hasn't done research, and his "friends" in the industry haven't given him good information. Even in business profitability and making payroll, Trump's supposed area of expertise, he is ignorant.