Insurers to lose $1 trillion if health law struck down

The Hill, May 17, 2012

Nearly one-tenth of the insurance industry's total revenue through 2020 is at stake in the Supreme Court's decision on healthcare reform, a new study by Bloomberg Government says. That figure equals about $1 trillion, or about one-half percent of the projected U.S. gross domestic product over eight years, the report said. The $1 trillion in new revenue would come from the law's expansion of Medicaid and from subsidies to individuals purchasing insurance. Though most of the money would eventually flow to healthcare providers, insurers would keep an average of $22 billion per year for profit and administrative costs, the study said.


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