Despite Glitches, Obamacare Profit Windfall To Insurers Well Underway
By Bruce Japsen
While politicians and pundits alike inside the beltway beat up the White House over computer system glitches, health insurance companies still project robust revenue growth and profits from a boom in business from newly insured Americans under the Affordable Care Act.
Take this week’s third-quarter earnings report and financial projections of Wellpoint (WLP), one of the nation’s largest health insurers, which earlier this week raised its earnings guidance for the third time this year. Amid a flurry of stories about the troubled launch of the federal health insurance marketplace web site known as healthcare.gov, Wellpointsaid its improved outlook is due in part to gains from the Affordable Care Act. On Friday, the Obama administration named a contractor to fix the site, saying it should be fixed by the end of November.