U.S. Health Insurance:Separating from the Pack

June '11

The Patient Protection and Affordable Care Act (PPACA), which became law on March 23, 2010, was a transformational event in U.S. healthcare that will redefine winners and losers in the industry. As a result of the legislation, 30 million new Americans will receive health coverage, while 100 million more are expected to change policies in the near-term. While this is a clear benefit for health insurers, due to new rules concering medical cost ratio minimums, guarnteed coverage, rate freezes, and industry taxes, among other things, insurers' profitability in various customer segments- individual, small group, and Medicare Advantage in particular - is expected to come under increased pressure. To compound matters, industry consolidation, provider consolidation and new delivery systems, and a move toward increased business process outsourcing will put additional pressure on insurer economics and require insurers to rethink how they go to market.

Please enjoy an excerpt of this article published on the Managed Healthcare Executive website- Click here.