The Patient Protection and Affordable Care Act (PPACA), commonly
referred to as health care reform, was on everyone's mind in 2013,
according to a special report by A.M. Best. Insurance companies
continued to make preparations for changes that were about to become
effective, January 1, 2014, many of which began in prior years. In
planning for open enrollment, which began October 1, 2013, insurers
redesigned products to be offered on the exchanges, implemented benefit
changes to comply with essential health benefits, filed new rates with
regulators and made modifications to their information technology
systems. Throughout all of this, health insurers appeared to have
adequately adapted, even with the issues that occurred during the
initial rollout of the federal exchange and some of the state-based
To operate in a post-PPACA environment, insurers also needed to adjust
someof the business models from which they had previously operated.
There are a number of macro-factors at play, including regulatory,
demographic and economic factors. Health insurance is now moving more
toward a retail environment with the federal and state-based exchanges
and with more focus on direct-to-consumer marketing. Many employer
groups are considering/electing to offer a private exchange model for
some or all of their employees' various health product needs. The aging
of the U.S. population has led to increased interest in Medicare-both
Medicare Advantage (MA)and Medicare supplement-among health insurers. In
addition, Medicaid is being expanded to account for the growing number
of unemployed who need health care coverage.
To access a copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=221578.
A.M. Best Company is the world's oldest and most authoritative
insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS
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