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Analyze The Changes In The Health Insurance Industry

523 Words3 Pages

There have been some major changes over the past few years within the health insurance industry. There has been increasing demand for health insurance even through the market has reached its maturity. Cost increase throughout the market, companies need to change to maintain profitability. The legal landscape, increasing cost of health care, and a sinking within the market have changed the environment that Health Insurance Company operates. The legal changes within the United States have reformed the health insurance industry. Since the signing of the Affordable care act (ACA) and Patient Protection act, there has been an increase in demand for health insurance (Hopes). The ACA requires individuals to get health insurance starting in 2014. This requirement has had an increase demand on the health insurance industry. Some laws that add an increase demand also add some burdensome regulation onto the market. Some of these regulations come from the ACA and the Patient Protection has added regulation onto the industry on how much in can loss. The maintenance of minimum medical loss ratios is requiring health insurance companies to have a minimum of the premiums paid go to health cost. …show more content…

These increase cost to the providers have changed how insurance companies act. They are looking for ways to cut cost in any way possible. Medicare and Medicaid is expense is expected to grow by 7% annual for the next five years (Hopes). Either these increased costs will be passed down to the client or companies will need to find ways to cut cost. Health Net Inc., which operates mainly on the west coast, has need looking to cut cost by outsourcing their backroom. With this outsourcing, the company is looking to save money and to maintain profitability. As for health care increase, the demand for health insurance will increase as

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