Now that health care reform is in motion, what effect will the massive legislation have on businesses?
The honest answer is no one knows for sure.
Here are some initial observations that seem reasonable, however it will be the details and implementation of this historic legislation that determine winners and losers.
Insurance companies
The insurance industry will (over the course of the rollout) acquire millions of new paying customers.
There is a good chance that many of the currently uninsured who will be brought into the system are healthy young adults – just the kind of customer to boost the bottom-line.
On the downside, much of the current business model for insurance companies will change and some companies won’t transition well.
Finding qualified people in all types of insurance jobs may be a challenge.
Drug companies
Drug companies will also benefit from millions of customers who may be able to buy more medications.
However, it is clear that reformers will continue to press drug companies for better prices and other concessions.
If Medicare is allowed to negotiate drug prices, look for major reductions in the cost of name-brand medications.
Health care providers
Hospitals, clinics, doctors and other health care providers may face a surge in patients as the formerly uninsured take advantage of services they previously couldn’t afford.
There will be fewer charity or no-pay patients, which will help.
However, there remain questions about reimbursement rates that are a major concern to providers. For example, Medicare, Medicaid and other government programs often only pay a small fraction of what the providers can charge private pay (private insurance or cash) patients.
Overall
The health care industry from providers to insurers to drug companies and all the industries that support them are facing an unknown future.
Old business models will have to be redone. Some companies will do well in the new environment, while others won’t.
It may take some time to determine winners and losers, but look for companies that view the new playing field as an opportunity to survive and prosper.
