Study: Health Insurers Could Lose $1 Trillion if PPACA Falls

Health insurers stand to lose roughly $1 trillion in revenue through 2020 if the Supreme Court strikes down the Patient Protection and Affordable Care Act, according to a Bloomberg Government study.

Matt Barry, a Bloomberg Government health analyst and the study's author, said in a Bloomberg report the $1 trillion that is on the line is roughly one-half of one percent of the nation's estimated gross domestic product from 2013 to 2020, but it represents about 9 percent of health insurance industry's total revenue during that same span.

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UnitedHealth Group and the other largest commercial payors would keep about $174 billion for profit and administrative costs over that eight-year period, according to the report. Health insurers will gain the most through the health insurance exchanges, which will include subsidized private insurance premiums, and the Medicaid expansion.

"It's a confirmation of, one, how much money we're spending as a nation on healthcare; and two, how much is riding on this court case and the Supreme Court's decision," Mr. Barry said in the report. "You're talking an amount of money here that can affect the economy, not just an industry."

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