“We believe the Affordable Care Act can enhance the number of insurance companies that offer plans in a state. It will also bring in new cooperative structures, nonprofits where stockholders are consumers who use the plan.” Stoll said. “None of the money in these structures will go to a CEO’s salary.”
But those in the insurance field warn that reform won’t necessarily mean either more competition or lower premiums.
“Health care premiums will go up for consumers because startup costs under reform will be very expensive,” William Berenson, president of Aetna’s Michigan market, says. “You’ll see some regional players go out of business, some carriers exiting the health insurance market, more because of health care reform than due to dominant players.”
Dave Waymire, a spokesman for Michigan Association of Health Plans, agrees. “The market plan will determine the prices,” he says.
Stoll is more optimistic. “Premiums have been increasing every year and will continue to do so, but once the Affordable Care Act goes through it will be at a slower rate,” she believes.
Blue Cross says with its discounts with health care providers, it saved its customers $13 billion in 2009.
