Have the Insurers priced themselves out of the market

As more small and medium sized employers are opting to not offer insurance to employers, the insurers are competing for what is left of the shrinking pool of consumers who can qualify and afford insurance coverage as the opportunities for growth continue to shrink....BD

It is never a good thing if many of your customers can no longer afford what you are selling.
The UnitedHealth Group, which announced disappointing first-quarter earnings on Tuesday, said the weakening economy was causing fewer businesses and employees to sign up for its health insurance. UnitedHealth, whose stock fell sharply on the report, also cut its overall profit outlook for 2008.
But Ms. Skolnick says that UnitedHealth, like many insurers, has priced its product beyond the reach of too many people and is now fighting with its competitors over a shrinking pool of customers.