Insurers Profit From Health Law They Fought

[eridani]

http://www.bloomberg.com/news/2012-01-05/health-insurer-profit-rises-as-obama-s-health-law-supplies-revenue-boost.html

Insurance companies spent millions of dollars trying to defeat the U.S.health-care overhaul, saying it would raise costs and disrupt coverage. Instead, profit margins at the companies widened to levels not seen since before the recession, a Bloomberg Government study shows.

Insurers led by WellPoint Inc. (WLP), the biggest by membership, recorded their highest combined quarterly net income of the past decade after the law was signed in 2010, said Peter Gosselin, the study author and senior health-care analyst for Bloomberg Government. The Standard & Poor's 500 Managed Health-Care Index rose 36 percent in the period, four times more than the S&P 500.

"The industry that was the loudest, most persistent critic of this law, the industry whose analysts and executives predicted it would suffer immensely because of the law, has thrived," Gosselin said. "There is a shift to government work under way that is going to represent a fundamental change in their business model."

The Bloomberg Government report is available only to subscribers, but Peter Gosselin provides the essence of his conclusions in the brief video available at the link above. Peter Gosselin discusses his report, "Despite Predictions, Health Insurers Prosper Under Overhaul" (5 minute video):

Comment by Don McCanne of PNHP: Peter Gosselin's Bloomberg Government report, "Despite Predictions, Health Insurers Prosper Under Overhaul," is further confirmation that, as long as we leave the private insurers in charge, they will always find a way to stick it to us, as we now witness a dramatic increase in insurers cornering taxpayer-financed health insurance programs- Medicare and Medicaid - not to mention the private plans that taxpayers purchase for government employees on all levels.

These trends are very healthy for the private insurance industry, but they're enough to make us sick.

[Thaddeus Kosciuszko]

1. Actually, many of them supported it when they discovered the individual mandate provision.

[eridani]

2. They had it both ways

Useless overpaid insurance shill Karen Ignani wrote it, while all the insurance companies whined about it at the same time.

[Tx4obama]

3. BUT starting January 1, 2012

SNIP

... the Patient Protection and Affordable Care Act (PPACA), known colloquially as Obamacare. PPACA dictates that health insurers must spend at least $0.80 of every $1.00 in premiums collected on health care in the individual and small group markets, and $0.85 in the large group market.

SNIP

http://www.forbes.com/sites/greatspeculations/2011/12/12/obamacare-mandate-kicking-insurance-agents-to-the-curb/


So, my guess is that the next time a report comes out their profits will be WAY DOWN.

[Fumesucker]

4. I imagine some of them will be able to hold on until 2014..

When they get a whole bunch of new and unwilling customers.

[eridani]

5. Not hardly. That's the average MLR now

Insurance companies exist to fuck us over, and they are writing the rules for implementation pf PPACA.

[Fumesucker]

13. Given that they wrote the PPACA in the first place it's hardly surprising..

Hardly surprising that they are writing the rules for implementing the rules.

The writing was on the wall in gigantic fluorescent neon letters when single payer advocates were locked out of the negotiations.

[TheKentuckian]

10. Queue laughing Jabba and the cackling of Sarlicious Crumb

Why do you think that?

The most likely result over time is higher systemic cost, this is not a control. Certainly not by its self.

All they have to do is pay more of what they are billed or increase the allowable charges.

You also cannot disregard the level if influence and input the "stakeholders" had. They tied no millstones around their own necks and the cartel I think honestly believes the drug industry made out even better.

The bill is for the benefit of the existing profit centers, it is designed from root to perserve and entrench the insurance cartel and prevent any degree of socialization.

[ProSense]

17. Not only that,

but the piece state that there are a number of factors unrelated to the health care law that could be driving the profit increase. It does mention:

<...>

At the same time, quarterly revenue from Medicare, the $525 billion federal health program for the elderly and disabled, increased by one third, to $16.39 billion, for the four insurers that reported figures, the study shows. Medicaid revenue more than doubled to $4.11 billion.

The companies run managed-care plans for Medicare that may see revenue rise by $10 billion by 2015 as more baby boomers retire, industry analysts have said. The insurers also administer benefits for Medicaid, which is being expanded under the health-care law starting in 2014 to cover more uninsured people. States have turned to private plans to manage Medicaid caseloads and help control health spending.

<...>

What's even more interesting is this:

The push toward government programs may prove to be a risky wager, Gosselin said in an interview.

The Supreme Court will rule on the law’s constitutionality this year and opponents of the law in Congress may target individual provisions in the overhaul for budget cuts, he said, Additionally, states may devise onerous rules for the way coverage is sold to uninsured Americans, he said.

The article reeks of an attempt to create the perception that the health care law is driving up profits (absurd) and turn opinion against it.

[Laelth]

6. The insurance industry fought about as well as Brer Rabbit. n/t

-Laelth

[woo me with science]

8. Exactly. nt

[SammyWinstonJack]

16. Yep! nt

[woo me with science]

7. They did a good job of appearing to fight.

The mandate was designed for their profit.

http://www.democraticunderground.com/?com=view_post&forum=1002&pid=96326

[madrchsod]

9. they will be increasing their profits as my generation signs up for medicare

supplemental insurance is dirt cheap compared to what i was paying before when i worked. my insurance now is close to 200 a month with 0 deductible. overall savings from me being off my wife`s company plan is 100 dollars a month.

[TheKentuckian]

11. "fought" makes a lot more sense.

[TheKentuckian]

12. "fought" makes a lot more sense.

[kestrel91316]

14. I suspect profit margins are increasing due to the double-digit

premium increases that are hurting so many people.

[kenny blankenship]

15. Insurers Profit From Health Law They Wrote

Fixed it for ya.

[MisterP]

18. well, they could have genuinely fought it, in order to get even better giveaways to them...