Is Obamacare Good for Insurance Companies?

By | April 5, 2017

Answering this question can be rather difficult, as dependent upon the circumstances it seems to have the potential to go either direction.

For employers that voluntarily comply with ObamaCare services and coverage, they receive tax ‘kickbacks’. In fact, even those that offer it by force and do so accordingly will also receive tax breaks and benefits.

From one prospective, ObamaCare seems to have the potential to be beneficial for many insurance companies – including government funded ones – in consideration of it’s forced-nature and the obvious financial benefits – arguably burden for some – of those that are required to do so.

Taking into consideration the rather fractionalized percentage of individuals that are “not” required to register for medical insurance or ObamaCare due to income, it becomes rather evident that insurance companies are going to make a substantial added revenue due to “forced” customers. However, on the same token, one might also consider the prospective and reality that, as it’s principally designed, insurance companies are in a position to lower their premiums for the insured, so in turn lose revenue in that sense.

Ultimately, it’s really ‘company-specific’, since some insurance companies are more popular than others, might benefit, or otherwise feel financial loss or burden due to these new government regulations or Act.

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