BISBEE’S BRIEF: A Coming Political Clash as Health Insurer Profits Soar

The House Energy and Commerce Committee announced an investigation Thursday into health insurance business practices. The announcement follows record profits from the nation’s largest health insurers. 

Over the last several weeks, large insurers have trumpeted blockbuster earnings. Anthem’s net income was $2.3 billion, up from $1.1 billion in the same period last year. United Healthcare reported $6.7 billion in quarterly profits compared to $3.4 billion during the second quarter of 2019. Humana reaped $1.8 billion versus $940 million in the year ago period (New York Times).

The Affordable Care Act (ACA) was statutorily architected to cap insurer profitability. Yet, a minimum Medical Loss Ratio (MLR) proved far more murky in its implementation and enforcement than the legislation’s original intent.

It can be challenging, amid the fog of the current pandemic, to say with certainty what the coming Congress will hold for health policy. I believe, however, a policy fight is looming between the not-for-profit providers of care (to individuals) and the for-profit insurers of those same lives. 

Will Leading Health Systems, individually and collectively, be prepared for the essential national conversation as January arrives?

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