Which health insurance company will be the next big winner of Obamacare?
Health insurance company Aetna, the country’s biggest, is the next target of Obamacare’s insurance expansion, according to a report from the investment research firm Bernstein.
The report notes that Aetanet is the largest insurer in the country with an annual market cap of $6.2 billion.
It’s also the only company that’s currently enrolled in the expansion, which started March 1.
But according to Bernstein, AetnAetna will become the largest health insurer in 2018, with an estimated $3.6 billion in annual revenues and $3 billion in premiums.
“Aetanewt will see a sharp jump in revenue of around $5 billion in 2018 with an expected premium increase of 20 percent,” Bernstein wrote in a research note.
“Aetannet has already been in the market for about a year and is well positioned to take advantage of the health care law’s expanded access to coverage.”
According to the Bernstein report, AETanew will have $7.7 billion in 2017 premiums and $8.1 billion in 2016 premiums.
Aetannewt also has a strong presence in the high-deductible Blue Cross Blue Shield plans and is the only insurance company to offer coverage for pre-existing conditions.
The Affordable Care Act’s coverage expansion also has implications for the health insurance industry.
Bernstein noted that the health insurers have had to increase premiums, which means that their business models are becoming more complex, and that they will need to do so in order to keep up with rising health care costs.
The healthcare law also means that health insurance plans are likely to see some changes in the future, according the report.
The government announced that it is raising its premium caps for next year to an average of $95 a month.
That’s an increase of 25 percent over last year’s caps and would give health insurance companies an additional $2.6 trillion in 2018.
The ACA’s expansion has also led to some changes within the healthcare industry, however.
According to Bernstein’s analysis, the health industry’s gross profit margin has declined by about 30 percent from last year to less than half of what it was a decade ago.
Bernstein’s estimates are based on the assumption that the ACA’s new policies will be passed on to consumers, meaning that health care companies will also see a significant drop in profits.