Health Care Service Corporation, one of the country's largest Blue Cross-Blue Shield operators, reported earnings of $1.3 billion in 2017 and said it grew its membership by 315,000. (Photo: Shutterstock)
Despite a concerted assault on the law by President Trump and Congress, the Affordable Care Act appears to be doing pretty well.
Not only do polls show that the health law is more popular than ever, but a number of insurers are reporting strong profits from their Obamacare business.
Recommended For You
One prominent example is Health Care Service Corporation, one of the country's largest Blue Cross-Blue Shield operators. On March 1, HCSC reported earnings of $1.3 billion in 2017 and said it grew its membership by 315,000.
Although it did not offer specifics, HCSC said that premiums for its ACA plans range from "slight reductions to modest increases."
It's hard to know what the company means by "modest increases," but at the very least the description suggests that the rate hikes will not be as great as ACA supporters have feared would occur as a result of the repeal of the individual mandate and the many other actions the Trump administration has taken to undermine Obamacare.
The good news from HCSC follows on the heels of a similar announcement last month from Centene, the largest player in the ACA individual market. The company reported its net profits had increased from $727 million in 2016 to $889 million in 2017. Centene said that it expected its ACA membership –– currently 1.6 million –– to grow in 2018.
Cigna, which operates ACA plans in six states, also recently announced good news: 5 percent increase in revenue and a 15 percent increase in net income for 2017. That followed a prediction from the company CEO late last year that its Obamacare business would be "slightly profitable."
Whether the good times continue, however, may depend on whether Congress approves a measure to stabilize the marketplaces by putting back in place a reinsurance program. Democrats and some Republicans have been calling for a multi-billion dollar funding measure to be included in an omnibus budget deal that Congress must approve by March 23 to keep the federal government open.
Many Republicans who have participated in attempts to defund or destabilize the ACA are now coming around to supporting funding for reinsurance. With the midterm elections looming, they don't want to be blamed for big premium increases if insurers are left to their devices.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
