Why is Obamacare the worst thing for the health care industry?
Health and life insurance industry leaders have weighed in on the state of the industry in the wake of the Supreme Court’s ruling to legalize the Affordable Care Act.
The National Association of Health Plans (NAHP) released its first-ever survey of 1,000 healthcare industry professionals on Wednesday, looking at why the Affordable Healthcare Act was such a boon to the health industry.
The NAHP said its data showed that the healthcare industry is enjoying a renaissance, with average revenues up 10.9% in 2018, from $16.6 billion in 2018 to $20.6 in 2019.
That’s up from $18.3 billion in 2019, according to NAHP.
The health insurance sector, meanwhile, saw a 10.6% increase in the number of employers hiring health care workers in 2018 from 17,939 to 22,984.
That was up from 19,955, the NAHP reported.
The survey also showed that healthcare costs in 2018 were up $1.5 billion in the first quarter of 2019, from an already-low $1 billion in Q1 2018.
The report said that this is due in part to the ACA’s expansion of Medicaid coverage, and in part because the number and size of providers in the sector is increasing.
The report said healthcare costs are rising at an accelerated pace as the number (and size) of insured people increase.NAHP President and CEO Robert B. Zirkelbach said that while the health insurance market is doing well, there are still many barriers to entry and a lack of quality care.
The ACA is also an enormous economic stimulus, with the average premium for a bronze plan rising from $6,800 in 2020 to $11,200 in 2019 ($9,400 increase in 2020 vs. $8,900 in 2019), Zirkelsbach said.
He said this is because the cost of the ACA was passed on to the consumers in the form of higher premiums.
This is a huge benefit to the entire health care sector, but it is a big boon to some segments of the health and life care industry, he said.
Zirkelbergs assessment is echoed by the National Association for Health Plans, which said that health insurers are seeing the biggest increase in enrollment as a result of the law, which has boosted premiums by 12% for individuals and 14% for families.