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

Trinity Health Implements athenaOne to Improve Operational Performance and Increase Value to Patients

Trinity Health, a multi-institutional Catholic healthcare delivery system, has entered a partnership with athenahealth, a provider of cloud-based healthcare services, to deploy the athenaOne solution into some of Trinity Health's physician network offices. This solution will effectively help the organization boost revenue, gain valuable insights, streamline patient interactions and reduce administrative work. [ Read More ]
04/16/2015

Infosys: Insurance Must Take Customer-Centric Approach to Technology

A new survey by Infosys has found that insurance companies need to pay more attention to the customer experience as they improve their digital strategies. [ Read More ]
04/15/2015

GetInsured Launches Lean State-based Marketplace Model

One of the biggest changes in U.S. governmental policy as of the last decade is in the passing of the Affordable Care Act. Also known as Obamacare, ACA makes state-based health coverage mandatory for many U.S. citizens, and it allows states to either run their health exchanges through the federal government or through their own marketplaces. [ Read More ]
04/14/2015

National Storm Damage Center Signs Agreement with Global Risk Management Solutions

The National Storm Damage Center (NSDC) has signed a noteworthy agreement with Global Risk Management Solutions (GRMS), a leading provider of vendor screening solutions. [ Read More ]
04/10/2015

Events

Weekly Live Demo
Contact Center Solutions

Register Today!