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New Report: Insurance Companies Banking on Health Reform

January 5, 2012

New Report: Insurance Companies Banking on Health Reform

Remember all those health insurers who said they'd go broke because of the Affordable Care Act? A new study shows they're richer than ever.

The study conducted by Bloomberg Media showed that 18 health insurance companies in the US "saw their average profit margins expand to 8.24 percent in the six quarters since the overhaul became law, compared with 6.88 percent for the 18 months before it was passed."

Many of them are shifting their business models to include managing Medicaid and Medicare services, in anticipation of 2014 when the law goes into full effect. The study found that "quarterly revenue from Medicare increased by one third, to $16.39 billion, for the four insurers that reported figures ... Medicaid revenue more than doubled to $4.11 billion."

Since health care reform is expanding the number of people who have access to insurance, it makes sense that the ballooning insurance rolls spells bigger profits.

Hopefully the law won't only help big insurance companies, but will provide more affordable coverage for people, including people with HIV.

Today, the blog posted this new factsheet explaining how health care reform would be affect people with HIV.


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This article was provided by Housing Works. It is a part of the publication Housing Works AIDS Issues Update. Visit Housing Works' website to find out more about their activities, publications and services.
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