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Health Insurers Move to Support ACA

Posted on January 20, 2013 by admin

The health insurance industry has always sided with proponents of keeping the status quo. When rumors of an Affordable Care Act first began to swirl, health agency upon health agency threw in support for the Republican Party. The healthcare industry simply didn’t want the change promised by President Obama.

Four years after the implementation of the ACA, these same companies are singing a different tune. The very same players that supported Republicans in 2008, during President Obama’s first election, have now changed sides. However, their motives remain the same.

With the GOP campaigning to repeal or at least reform Obamacare, health insurers have come to its support. The healthcare industry doesn’t want the newly established status quo altered.

Aside from the Americans who are receiving affordable health coverage when they previously could not afford it, these health insurers arguably benefit the most from the Obama administration’s healthcare legislation. Among the advantages they’ve received are millions of new consumers who have now been pushed toward their privates plans. In addition, those Americans who apply for Medicaid plans also tend to benefit these insurers, because said health insurance companies typically manage the state’s Medicaid program through contracts.

The federal subsidies that low-income consumers receive from the government are also beneficial to these health insurers. It means more customers for their business. The result is that these insurers continue to make a profit, even if they are currently required to use 85 percent of the money they earn on actual medical care.

Change is what President Obama promised when he campaigned for office in the fall of 2008. That is exactly what he brought to the American people in the form of health reform. The ACA augmented the amount of people insured, gave states funds to cover the cost so that they can focus on other important programs, and now health insurance companies are eating piece of the pie: more consumers and economic success.