Health Insurance Companies Prepare for 2014

Many provisions of the Affordable Care Act (ACA) go into effect on January 1, 2014.  Insurers will be required to cover anyone who wishes to purchase health insurance, they will be limited in what they can charge patients based on age or health history, and people will be able to purchase insurance policies on exchanges overseen by the government.  In addition, states will have the option of expanding their Medicaid programs, with funding largely provided by the federal government.  While some insurance executives expect the industry’s profit margin to shrink in the coming years, the ACA could offer opportunities for growth with Medicaid expansion and health insurance exchanges increasing the number of insured.