ACA Article Paper
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Running Head: ACA IMPACT ON HEALTH INSURANCE COMPANIES 1
How The Affordable Care Act (ACA) is Impacting Health Insurance Companies
Tonya Rizo
Stratford University
HCA 401
Professor Judith Kienle December 2, 2015
Running Head: ACA IMPACT ON HEALTH INSURANCE COMPANIES 2
How The Affordable Care Act (ACA) is Impacting Health Insurance Companies
The Patient Protection and Affordable Care Act's (ACA) marketplaces, or healthcare exchanges, were created to provide accessible and affordable healthcare coverage for uninsured or underinsured Americans. They are organizations that have been set up in each state to oversee and facilitate health insurance policies for people to purchase. These policies are available for subsidies from the federal government. The ACA (also known as Obamacare) marketplaces were signed into law in March of 2010 and since full implementation in January 2014, more than
8 million people have signed up and purchased health insurance policies (Mangan, 2014). This healthcare reform has helped millions of Americans but it has also hurt several managed healthcare companies; some to the point where they may consider leaving the marketplace (also known as healthcare exchanges) altogether.
United Healthcare, a division of UnitedHealth Group, the largest health carrier in the United States, has lost over $400 million in the marketplace. The company recently announced that it may leave the healthcare exchanges by the year 2017 because of this loss. Health Care Service Corporation lost almost $300 million in 2014. They blame the reason for this loss mostly on the new individual plans in the marketplace. These new individual plans are also the reason that AETNA and Anthem CEOs are concerned about their losses but are remaining patient, for the time being (Herman, 2015).
The ACA’s Marketplace has helped more Americans than ever get proper health insurance coverage but because of all of the new individual plans and people actually utilizing the services offered in these plans, the insurance companies are taking the hit and losing large profits. Obamacare’s goal of insuring more Americans is being reached, which should be
Running Head: ACA IMPACT ON HEALTH INSURANCE COMPANIES 3
considered a good thing but the insurance companies’ profit goals are not, which they consider is
a bad thing.
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Running Head: ACA IMPACT ON HEALTH INSURANCE COMPANIES 4
Herman, B. (2015). UnitedHealth considers ditching ACA’s exchanges due to giant losses. Retrieved from http://www.modernhealthcare.com/article/20151119/NEWS/151119858?
utm_source=modernhealthcare&utm_medium=email&utm_content=20151119-NEWS-
151119858&utm_campaign=am
Mangan, D. (2014). Latest score: Obamacare enrolls 8.02 million by April 19. Retrieved from http://www.cnbc.com/2014/05/01/obamacare-enrolls-802-million-by-april-19.html
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