How Has the ACA Changed the Insurance Industry


How the Affordable Care Act (ACA) changed the insurance industry is a matter of opinion for insurance companies, the Republican Party, and the millions of people affected by affordable health care. Before the Affordable Care Act was passed into law, the Republican Party tried 50 attempts to repeal the law. However, six years later, it is evident that the insurance industry is doing extremely well.

New Rules and Regulations for the Insurance Industry

With any new program or law comes rules and regulations that are designed to govern the outcome. The current health care industry in the United States was not working well. Millions of families and individuals who needed health care could not afford to visit the doctor, due to the increasing high premiums, and difficulty finding any the right type of insurance. The argument between opposing parties on one side believed that the insurance companies had too much lead way, and the other side believed that imposing regulations would lead to bigger problems.

Surprising Turnaround of Events Lead to Bigger Profits- More Business- Increased Customer Increase

Despite the big fuss insurance companies made about the changes in regulations, the industry cannot dispute the facts. Since Obamacare, insurance companies worldwide has experienced an:

• Influx of clients
• Government subsidized payments

These two major changes have not only helped poverty- stricken and low income Americans, it has also helped new and emerging insurance companies, get off to a great financial start. This is truly a sign of a growing and prosperous industry; nevertheless, it is creating increased competition, which also helps to keep insurance cost lower for customers.

From the very beginning of Obamacare, the insurance industry has feasted from the increasing amount of revenue from thousands or perhaps millions of new customers. What does this mean? First, it means that the Republicans were fighting against a program that achieved or even exceeded its expected goal, which was to increase and provide coverage for uninsured Americans.

In the process, subsidized insurance have made health care more accessible to many, who would not have otherwise qualified for health care insurance, although the law is responsible for the increase in some premiums to rise significantly. Some experts would say that Obamacare has definitely played a major role in the reducing government spending, which to some people, that is certainly not a deficit.

Regulation Revisions Might Be the Answer ACA_Insurance

However, despite of the many divided opinions of government, and experts, the overall goal was accomplished. Although, some people feel that the removal of strict regulations could benefit insurers and insurance companies, it may not be wise to remove regulations that are obviously working. It would, however, be wise to re- evaluate some regulations, and amendments, and update some provisions.

Insurance companies are expected to reap even more government subsidized payments in 2017, as more participants enter the Obamacare Affordable Care Act Program. In 2015, one of the largest health insurers lost $475 million dollars in revenue, and is expecting to lose $650 million dollars in 2016. Out of 23 co- ops, 12 have collapsed, and the total amount owed in federal loans is $1.2 billion dollars.

The cost of this deficit is passed on to the policyholders and other insurance companies, who is forced to increase their premiums. It is expected that eight more co- ops are likely to fall into a deficit in the near future.

For struggling insurance companies, the Affordable Care Act is a win- win solution. For others, it is a nightmare waiting to happen. In the upcoming years, lawmakers might get their wish and eliminate or reform Obamacare, but as of this moment, the insurance industry is reaping in the dollars, signing on new customers during each enrollment period.

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