Insurance Technology Featured Article

Health Insurers Marketing to Poorer, Less Educated as Insurance Expands

October 03, 2012

While in the past, many people choosing health insurance considered doctors in the network and the coverage offered before picking their policies, today – after healthcare reform – more are making that decision based on price.

According to a story by Reuters (News - Alert), this will happen because in many cases, health insurers will now be offering policies to individuals “less educated and poorer than their current policyholders,” PwC Health Industries reported Tuesday.

In terms of education, PwC said it expected 14 percent of the newly insured to hold a bachelor's degree or higher, compared to 37 percent of the currently insured.

As a result of the Patient Protection and Affordable Care Act (ACA), 30 million Americans will now become insured through regulated exchanges in each state – called health insurance exchanges – more plans from employers, and Medicaid’s expansion.

Of the people expected to become insured over the next decade, about 45 percent will buy health coverage through these state exchanges, PwC said. But currently, only a handful of states have public health exchanges. Those states are Washington, Oregon, California, Nevada, Utah, Colorado, Kentucky, West Virginia, New York, Vermont, Connecticut, Rhode Island, Massachusetts and Hawaii. 

One-third will be covered by Medicaid, and the remaining 25 percent by employers.

Of the states choosing not to accept federal funds for setting up healthcare exchanges, the government will do it for them in 2014.

"What we've seen with this group, which is a little bit less educated with lower incomes, is that most of their decisions are going to be driven based on price initially," Vaughn Kauffman, a principal with PwC Health Industries, told Reuters.

Though the ACA requires that each state set up a way to cover all uninsured residents, one-third will do it through an expansion of Medicaid – which the federal government will finance. But in an interesting twist, the Supreme Court decision upholding the ACA did not make it mandatory that all states expand the health program for the poor, and some states, like Georgia, are indeed refusing.

Governor Nathan Deal said his state just cannot afford it.

The U.S. Census Bureau revealed in September that the number of people living in poverty is not growing quite as fast as previous years, but in 2011, 6.6 percent of the U.S. population was living below 50 percent of the poverty threshold. Another 35.1 percent of Americans were living at or above 400 percent. 

Sadly, many of those in this difficult situation are children.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO Austin 2012, happening now in Austin, TX. Stay in touch with everything happening at ITEXPO (News - Alert). Follow us on Twitter.




Edited by Braden Becker

Article comments powered by Disqus

Related Insurance Technology Articles

Sapiens Reinsurance Selected by West Bend Mutual Insurance

Sapiens International Corporation, a provider of software solutions for the insurance industry, recently announced that its Reinsurance solution has been selected by Wisconsin-based West Bend Mutual Insurance (West Bend) to better manage and control its reinsurance business and related processes. [ Read More ]
07/29/2014

Genpact Optimizes BPO Solutions for SAP

Genpact is optimizing business process outsourcing (BPO) solutions for the SAP Business All-in-One for Insurance solution using the SAP HANA Cloud Platform. [ Read More ]
07/29/2014

UK's Towergate Insurance Selects Earnix Insurance Solution

Towergate Insurance, one of the U.K.'s largest independently owned insurance intermediary, has selected the Earnix Insurance solution to enhance its customer analytics and pricing management capabilities. [ Read More ]
07/28/2014

Genpact Utilizes SAP HANA Cloud Platform

Genpact, which stands for 'Generating Impact,' once again lived up to its reputation of helping enterprises become more adaptive, globally effective, and connected to their own clients, using the SAP HANA Cloud Platform. [ Read More ]
07/28/2014
FREE Insurance Technology enewslettter.

Events

Weekly Live Demo
Contact Center Solutions

Register Today!