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

Report: Canadian Insurance Market to Focus on Technology in 2015

Business processing services provider Xchanging Insurance Services recently announced the results of an industry survey it completed regarding the Canadian insurance market. To complete the survey, it partnered with Insurance-Canada.ca, which completes seminars and survey to help inform consumers and insurance professionals about the latest in technological innovation in the insurance market. [ Read More ]
11/24/2014

Certifi to Deliver Improved Billing and Payment Management Through SaaS William Platform

Inefficiencies in medical billing costs the U.S. healthcare industry billions of dollars annually, and as another government program, the Affordable Care Act (ACA) or Obamacare, gets integrated into the system that number is surely to rise. A study conducted by Harris Poll on behalf of NerdWallet in August of this year revealed hospital billing errors are resulting in overcharges of up to 26 percent. The number of errors for Medicare medical billing was all the way up to 49 percent, meaning almo… [ Read More ]
11/24/2014

Nominating Committee for 2015 Novarica Research Council Impact Awards Announced

For those on the technology implementation and management side of the insurance industry the research and advisory firm Novarica is no doubt a very familiar one. The company provides information, insights, and perspectives to industry professionals on a variety of topics and hosts the Novarica Insurance Technology Research Council, a moderated knowledge-sharing community of more than 325 senior IT executives representing more than 300 North American insurers. [ Read More ]
11/19/2014

Kofax to Improve Claims Processing for General Insurance and Asset Management Provider

Improving the business processes associated with mission critical insurance interactions is at the top of most insurers' lists regardless of where they are located around the world. An example of the universality of the need to improve such processes through software automation, which not only improves business process efficiency but also reduces costs while improving the customer experience, is a recent announcement from business process automation specialists Irvine, CA-based Kofax. [ Read More ]
11/19/2014
FREE Insurance Technology enewslettter.

Events

Weekly Live Demo
Contact Center Solutions

Register Today!