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Fewer people insured, the more risk for the insurers

by

Hubert Roy

24 September 2019 09:44

Photo : Stockvault.net

“The honeymoon is over. “It is in these terms that the credit rating agency A.M. Best describes the relationship between the Americans and the Affordable Care Act. This law is also known as Obamacare, arising from the name of the previous president of the United States Barack Obama, which has led to the adoption.

For firm rating, Americans no longer have additional benefits to be drawn from the Affordable Care Act. Should we abolish it ? No, warn analysts, because increasing the number of people without coverage would be dangerous for the health insurers americans.

However, the solution is not to make this public system to 100 %, say the analysts at A. M. Best. Insurers have an important role to play in the equilibrium of the insurance market in the United States, they say.

What to do ?

It is, therefore, to say that the insurance market in the United States is navigating in troubled waters, but that the current system also allows you to prevent the worst, they stress in the study the Increase in The U. S. Uninsured Rate Will Only intensify The Policy Risks For Health Insurers.

They recall that the number of people who do not have health insurance coverage in the United States rose from 47 million Americans in 2010 to 27 million today. The impact has been positive for the insurers who are present there. A larger number of them displayed a perspective of stable development.

A problem is bipartisan

So what is the biggest problem of the Affordable Care Act ? It is political, believe the analysts at A. M. Best. The democrats are decidedly in its favour, but not the republicans. This lack of support within both parties is to stagnate his progress. Not to mention that 18 % of u.s. GDP comes from health care.

“We expect that the political debate and the legal challenges that are associated with them remain a key component of the health insurance plan in the United States in the short term. The ability of insurers to adapt will be a key factor in determining the quality of their credit rating, ” says A.M. Best.

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