on June 28, 2012 by admin in Insurance Industry, Comments (0)

Supreme Court Gives Insurance Industry, Employers Cover To Implement …

WASHINGTON - APRIL 06:  U.S. Secretary of Heal...

U.S. Secretary of Health and Human Services Kathleen Sebelius, health plans and insurance companies now have cover to implement the Affordable Care Act after the Supreme Court upheld the mandate that Americans have to buy coverage, something the insurance industry wanted in the law. (Image credit: Getty Images North America via @daylife)

Though not in the health insurance industry statement on the Supreme Court’s decision today, health plans and the employers they serve now have the cover they need to implement the Affordable Care Act after Justices upheld the requirement to buy coverage, also known as the “individual mandate.”

The Affordable Care Act, through this requirement, will bring millions of paying customers to the health insurance industry and big name insurers like UnitedHealth Group (UNH); Humana Inc. (HUM); Aetna Inc. (AET) and Cigna Corp. (CI). Their stocks are getting hammered early this morning given the rules and regulations they face that require them to spend more than 80 percent of premiums on medical care and other consumer-friendly regulations.

But this mandate is what they said they wanted even though they seldom talked about it much after more Republicans took power in Congress. The health plans’ lobby, America’s Health Insurance Plans (AHIP), was a huge proponent of the mandate and demanded President Obama and Democrats include it in the legislation. Here’s an earlier take on the tick-tock of those events leading up to passage of the legislation into law before spring of 2010.

And here’s AHIP president and chief executive officer Karen Ignagni’s statement on the Supreme Court ruling, saying that “maintaining the link between market reforms and universal coverage is essential to avoiding significant cost increases and loss of choice for consumers and employers.”

The health insurance industry’s predominant client lists — those who pick up the tab for most of their products — appear ready and are being advised to move on and implement coverage under the law.

Article source: http://www.forbes.com/sites/brucejapsen/2012/06/28/supreme-court-gives-insurance-industry-employers-cover-to-implement-obamacare/

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