Insurance Companies Could Profit From Fewer Customers Under GOP Plan

The health insurance company Anthem has said the GOP bill would benefit both insurers and individuals.

Aaron P. Bernstein/Getty Images


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Aaron P. Bernstein/Getty Images

The health insurance company Anthem has said the GOP bill would benefit both insurers and individuals.

Aaron P. Bernstein/Getty Images

The House Republicans’ embattled health care bill has plenty of detractors: Democrats, hospitals, the American Medical Association and the House Freedom Caucus all oppose it. But the insurance industry is not on that list, even though it stands to lose millions of customers.

One reason is that insurers’ profits are expected to fatten under the bill.

The GOP’s replacement plan would likely attract more consumers who are younger and healthier to the individual market than the Affordable Care Act did, according to the corporate credit rating firm Standard Poor’s. The ACA tilted the opposite way, offering more options for older, sicker Americans whose health care claims eroded insurers’ profits.

“Profitability will likely improve, as the replacement plan can result in an improved risk pool in the individual market,” SP said in a

Article source: http://www.npr.org/sections/health-shots/2017/03/24/521361165/insurance-companies-could-profit-from-fewer-customers-under-gop-plan?utm_medium=RSS&utm_campaign=affordablecareact

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