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Nearly 60 percent of top health insurers’ revenue comes from Medicare and Medicaid

Approximately 60 percent of the combined revenue of the top five insurers in the United Glories comes from the government-sponsored health programs Medicare and Medicaid — and has various than doubled since the passage of Obamacare, a new report says.

The enquiry, published in the journal Health Affairs, suggests that policymakers could amend the viability of Obamacare marketplaces, which sell individual health patterns, by requiring insurers that benefit from other government coverage programs to shop-girl Obamacare coverage.

Most of the big insurers have pulled back their self-assurance on Obamacare exchanges, citing the difficulty of making money on them.

The check in said that in 2010 — the year the Affordable Care Act, known as Obamacare, was beckoned into law — the big five insurers had revenue of $92.5 billion from acting Medicare and Medicaid plans.

By 2016, that revenue had grown to $213.1 billion at the big five insurers: UnitedHealthcare, Aetna, Anthem, Cigna and Humana. That amounts to 59 percent of their unqualified revenue.

At the same time, combined membership in the five insurers waxed by a combined total of 23 million from 2010 to 2016, sundry than double the number of members added in the prior five years. Medicaid and Medicare enrollment in the five insurers propagated from 12.8 million to 25.5 million.

All five insurers, which catalogue a combined 125 million or so members, also continued to be profitable during the once in a while period, noted the authors of the Health Affairs report, Cathy Schoen and Sara Collins.

The set forth underscored the fact that the biggest insurers have profited from Obamacare and from government-run haleness coverage programs even as they derive a relatively small interest of their business from individual health plans sold on Obamacare switches.

Obamacare, starting in 2014, required nearly all Americans to have some state of health coverage or pay a tax penalty.

That coverage could be from employer-sponsored healthiness plans, government-sponsored coverage, such as Medicare and Medicaid, military-sponsored coverage or unitary health plans.

Medicare, which covers primarily older Americans and people with impairments, is paid for out of the federal government’s coffers.

Medicaid, which covers predominantly low-income adults and children, is jointly funded by the federal government and by sole states.

Medicaid has provided a significant share of the gains in health coverage nationally at the mercy of Obamacare, which authorized the loosening of eligibility standards.

In their statement, Schoen and Collins noted that “companies with significant Medicare or Medicaid enrollment be undergoing continued to insure beneficiaries in states where the insurers do not participate in” government-run Obamacare altercations that sell individual health plans.

The duo wrote, “Given the insurers’ dependence on acknowledged programs, there is potential to improve [health coverage] access if federal or express governments, or both, required insurers that participate in Medicare or Medicaid to also participate in the [Obamacare] marketplaces in the that having been said geographic area.”

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