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global1

(25,270 posts) Mon Jun 15, 2015, 10:23 PM Jun 2015

The Potential For Consolidation In The Health Insurance Is....

making me nervous. First Humana is out looking for a buyer. Now United Healthcare is looking at Aetna. And I just heard Anthem is looking at Cigna.

What's going on and what might this mean for ACA?

Will these companies become too big to fail? Will premiums go up? Are we getting closer to single payer?

What's up?

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The Potential For Consolidation In The Health Insurance Is.... (Original Post) global1 Jun 2015 OP

Possibly just a lot of cash sitting around. Igel Jun 2015 #1

Igel

(35,359 posts)

1. Possibly just a lot of cash sitting around.

Reply to global1 (Original post)

Mon Jun 15, 2015, 10:47 PM

Jun 2015

And no good investment opportunities.

Then again, with restrictions on % of revenues that can go for profit and overhead, the way for a single corporation to increase earnings is to increase revenues. Increased efficiencies may drive down costs, but that percentage is fixed by regulation. If you manage to lower premiums by 5%, that'll lower revenues and your "reward" for more efficiency is smaller profit.

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