Gov’t Programs Account for More of Private Insurers’ Revenue
The nation's top private health insurers have seen substantial revenue growth in recent years, in part because of their expanding roles in government health programs such as Medicare and Medicaid, according to a study by Bloomberg Government, the Washington Post reports.
The researchers examined several major insurers -- Aetna, Cigna, Humana, UnitedHealth Group and Wellpoint -- and found that the companies' share of revenues coming from Medicare and Medicaid increased from 36% to 42% over the past three years.
Meanwhile, the insurers also increased their combined operating margins -- the share of the company's revenue left over after accounting for operating expenses -- by 8.65%, even as revenue from traditional business remained flat.
The study suggests that major U.S. insurers will further increase their reliance on federal programs after Medicaid is expanded under the federal health reform law in 2014 (Aizenman, Washington Post, 1/4).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.