Donald Trump said that Obamacare impact on Americans (introduced in 2010) benefited major health insurance companies. Their stock prices increased dramatically, but the general public did not benefit.
Company share price calculations:
- UnitedHealth: Increase from $25.66 to $327.74 โ an increase of 1177%
- Cigna: Increase from $32.01 to $295.41 โ an increase of 822%
- Anthem/Alevense: Increase from $61.90 to $318.08 โ an increase of 414%
- Humana: Increase from $47.48 to $279.92 โ an increase of 490%
- Molina: Increase from $15.38 to $147.46 โ an increase of 859%
- Centene: Increase from $5.52 to $38.84 โ an increase of 604%
- Aetna: Increase from $30.50 to $212 (sold in 2018) โ an increase of 595%
What impact did this have on the common man?
Obamacare impact on Americans increased insurance companies’ profits but made insurance more expensive for ordinary people. People had to pay monthly premiums, but coverage was limited. Many couldn’t even choose their own doctor. The company received government assistance, so its stock prices soared.
What was the result?
Obamacare impact on Americans made the rich (company owners and investors) richer, but it didn’t significantly benefit ordinary Americans. Trump said that the plan boosted the company’s business instead of helping the common man.
What benefit did the company gain?
Some companies are incurring losses: Oscar Health, the company that sells Obamacare plans, is still incurring losses. It expects some profit by 2026.
Losses to large companies: Large companies like Aetna are exiting the Obamacare business. This means their employees feel the business isn’t as profitable.
What impact did this have on the common man?
Rising insurance prices: Obamacare insurance premiums (total monthly) are projected to increase by an average of 26% next year, 2026. In some states, this could increase by as much as 30%.
Dependence on government assistance: Most people are able to afford insurance thanks to government subsidies (premium tax credits). If this subsidy were discontinued, people would have to pay twice as much. There is a political battle going on over this subsidy.
Fewer companies benefit: In 2013, there were 395 insurance companies, but by 2021, only 253 remained. Fewer companies mean fewer people have options.
The truth about company profits
Profit from government funding: The government subsidizes insurance for more than 85 million people, and this money goes directly to the insurance companies.
Income from other businesses: The real profits of a company like UnitedHealth come not from Obamacare, but from Medicare Advantage (senior insurance) and other businesses.
What’s the final conclusion?
Insurance company stock prices are rising, but many companies are currently facing problems due to their Obamacare plans.
- Insurance prices and benefits are rising rapidly.
- The average person can only get affordable insurance through government assistance.
Do you want to know about a particular insurance company?
In short:
The Obamacare impact on Americans people “slept the night away,” but the public health administration did not.
