Investors are more optimistic about the impact of healthcare reform on health insurers because recent regulations based on the law have been relatively industry-friendly, according to a report by Politico.
Investors at the J.P Morgan Health Care Conference cited recent regulations on the medical loss ratio, involving the percent of premium dollars set aside for administration and profit, and insurance rate reviews. "There was so much uncertainty last year," said Ipsita Smolinski, president of Capitol Street, "but with the MLR and rate review regulations out, investors know they have a pretty viable future."
Aetna and Humana are exploring ways to capitalize on the individual market, which would grow in 2014 under the individual mandate to buy insurance, and they apparently were not fazed by multiple state lawsuits against the mandate, which are expected to go to the Supreme Court.
Anticipating an expansion in Medicaid coverage under the reform law, insurers are also actively pursuing contracts with states to manage their Medicaid plans. "Medicaid is going to be a critical component of our business model with 17 million joining that program," said Aetna CFO Joseph M. Zubretsky.
Read the Politico report on health insurers.
Read more coverage of health insurers:
- Insurers, Healthcare Providers Spar Over ACO Regulations
- 8 Key Provisions of Healthcare Reform Taking Effect in 2011
- Blue Shield of California Imposes Rate Hikes of as Much as 59%
Investors at the J.P Morgan Health Care Conference cited recent regulations on the medical loss ratio, involving the percent of premium dollars set aside for administration and profit, and insurance rate reviews. "There was so much uncertainty last year," said Ipsita Smolinski, president of Capitol Street, "but with the MLR and rate review regulations out, investors know they have a pretty viable future."
Aetna and Humana are exploring ways to capitalize on the individual market, which would grow in 2014 under the individual mandate to buy insurance, and they apparently were not fazed by multiple state lawsuits against the mandate, which are expected to go to the Supreme Court.
Anticipating an expansion in Medicaid coverage under the reform law, insurers are also actively pursuing contracts with states to manage their Medicaid plans. "Medicaid is going to be a critical component of our business model with 17 million joining that program," said Aetna CFO Joseph M. Zubretsky.
Read the Politico report on health insurers.
Read more coverage of health insurers:
- Insurers, Healthcare Providers Spar Over ACO Regulations
- 8 Key Provisions of Healthcare Reform Taking Effect in 2011
- Blue Shield of California Imposes Rate Hikes of as Much as 59%