The Affordable Care Act will push the over 45 million uninsured in the United States to find health care coverage. The largest portion of this group will find coverage through the health insurance marketplaces set up by the state and federal exchanges. Consumers purchasing through the exchanges will receive coverage through private insurance companies, with many receiving federal tax credits to help pay for policies. While the consumer may not be paying the full price of the policy, the insurance companies will still receive the full premium.
Based on our estimates the uninsured are worth a potential $92+ billion in annual premiums to the insurance companies. The Affordable Care Act requires that 80% of the value of the premiums be used to service health care costs, leaving a little over $18.4 billion to be spread across employees, marketing, overhead and profits. Insurance companies we've looked at could expect anywhere from 2-4% of all premiums to come in the form of profits. This would amount to $1.8-$3.6 billion dollars annually.
Read more Obamacare Could Be Worth More Than $90 Billion to the Insurance Industry - DailyFinance
Based on our estimates the uninsured are worth a potential $92+ billion in annual premiums to the insurance companies. The Affordable Care Act requires that 80% of the value of the premiums be used to service health care costs, leaving a little over $18.4 billion to be spread across employees, marketing, overhead and profits. Insurance companies we've looked at could expect anywhere from 2-4% of all premiums to come in the form of profits. This would amount to $1.8-$3.6 billion dollars annually.
Read more Obamacare Could Be Worth More Than $90 Billion to the Insurance Industry - DailyFinance
No comments:
Post a Comment