Five Reasons the Individual Health Insurance Market Is On Fire, in a good way

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Five Reasons the Individual Health Insurance Market Is On
Fire, in a good way

Many would agree with the statement that there is a major industrial shift taking place right now.

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Most people would agree with me that there is a major industrial shift taking place right now. The service sector is growing in America. It is mostly due to the convenience mindset and the shift in society’s thinking, as well as the entry of the baby boomer generations into the decumulation phase.

We are seeing enormous private equity investments and consolidations in individual healthcare insurance, both the Affordable Care Act and Medicare sides. As we are seeing many advocates of “Medicare For All”, Medicare is a standard in healthcare. It has existed for a while. This conversation appears to be leading towards a managed healthcare model, funded by increased payroll taxes and supported/administered through private insurance companies.

These are just five reasons that the market for health insurance is hot (in a positive way).

1. All indications point towards a decline in group health services over the next ten years, and an increase in individual health enrollment.

Although I don’t feel any difference when I state this, the idea that employers must offer insurance to their employees is changing. Affordable Care Act is often a more cost-effective and high quality option than many small group insurance plans. Members of these group plans don’t realize that they are paying more for their health care through work than what they pay on the individual market. These employers will push for more stringent legislation to require their employees to receive healthcare. They’ll also be taxed for the individual health care system.

Related: The Future of Healthcare Is in the Cloud

2. Medicare age reduction.

We have all seen the ramblings about lowering the Medicare age to 60. It could happen. It was several years ago that Social Security’s full retirement age changed. This was followed by a gradual increase in the age of eligibility. It was the same when Congress closed the Medicare Part D Coverage Gap. Year after year it was passed and a greater emphasis placed on the pharmaceutical companies paying some of the costs.

They will soon do the same with sliding age. I expect the Medicare Part B premiums that are paid to cover the cost of Medicare Part B to decrease as the population reaches 65. This should actually be viewed positively, as it will help ensure Medicare is solvent. However, younger and healthier individuals may pay slightly more premiums.

3. 3.The silver tsunami

Although the boomer generation has been around for some time, the statisticians currently project the peak age of the baby boomers to be 2024-2025. As alarmingly fast as we’ve seen the Medicare industry grow, this means it will only get bigger. Businesses that are able to assist these Boomers will prosper, although we don’t believe that the industry infrastructure is ready for such growth. It is possible to set up local resources centers and agencies for Medicare beneficiaries. We have just begun to explore the local service level offered by Medicare’s managed care program.

Similar: Warren Buffett tried to kill the “Tapeworm” of healthcare costs but couldn’t. Maybe Entrepreneurs Can.

4. 4.

We’ve now seen both individual and group enrollment possibilities. This article explores the impact of 2020-2021 on public opinion about the Affordable Care Act. Through 2019 we saw a lot of negativity towards HMO plans commonly sold on the Health Insurance Marketplace, but since then the Affordable Care Act has become a more necessary option for millions of people. Many satisfied customers have seen these plans become established in hospital networks. This is what we saw with Medicare Advantage as it evolved through the years.

5. 5.

There is a lot of talk about passive income or residual income. We are seeing more businesses offering subscription-based revenue streams. But, for many years the healthcare industry has paid its distributors and agents in this manner. These types of plans are now being offered by the healthcare system, which will allow them to receive subscription-based payments from Medicare Advantage companies. The basis for planning and predicting your business’ growth is based on residual revenue. No matter what we do with the revenue, Medicare and insurance offer huge residual opportunities.

Related: Healthcare is in Turmoil, But Technology Can Save Businesses Billions

Publited at Sun, 01 August 2021 12:55.59 +0000

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