The Changing Face of the Health Insurance Industry
‘ Over the next few years , growth opportunities for insurance players will be driven by greater reliance on managed care ’
In the fourth year of its implementation , uncertainty relating to the Affordable Care Act reform seems to be cleared up . Insurers , however , are seeking new ways to prosper in the changing industry , with various players looking to international markets .
Lesser regulations , higher margins , greater demand and lower competition are key foreign attractions .
Companies such as Cigna and Aetna already have a wide overseas presence , and view their international business as a positive differentiator amongst peers . Both companies intend to penetrate deeper into the emerging economies of Asia and the Middle East .
In April , Aetna bought U . K . -based InterGlobal , which offers private medical insurance to groups and individuals in the Middle East , Asia , Africa and Europe . Similarly ,
UnitedHealth has also expanded its reach to Brazil with the purchase of AmilParticipacoes . It shouldn ’ t come as a surprise if more international deals begin to surface .
Over the next few years , growth opportunities for insurance players will be driven by greater reliance on managed care . According to estimates from the Office of the Actuary at the Centers for Medicare and Medicaid Services , aggregate health care spending in the United States will grow at an average annual rate of 5.8 percent , or 1 percent faster than the expected GDP growth . Moreover , managed care penetration is expected to grow to about 50 percent of the total national health care spending , up from approximately 33 percent at present on increase reliance on insurers for Medicare and Medicaid products .
Starting in 2014 , Affordable Insurance Exchanges will make it easy for individuals and small businesses to compare qualified health plans , get answers to questions , find out if they are eligible for tax credits for private insurance or health programs like Medicaid and the Children ’ s Health Insurance Program ( CHIP ), and enroll in a health plan that meets their needs .
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