Next month, America’s health insurance plans may lose $1 trillion in revenue.
It won’t have anything to do with a business deal gone awry, or Americans dropping health coverage during the recession. Instead, $1 trillion is the amount of revenue that health insurance plans can expect to lose if the Supreme Court overturns the Affordable Care Act. The Court is expected to issue its opinion in late June.
The figure comes from Bloomberg Government, where number crunchers have taken a look at what happens if the Supreme Court strikes down the Affordable Care Act and its expected expansion of health care coverage to 32 million Americans. They find that, should the Affordable Care Act be found unconstititional, insurance companies will lose $1 trillion in revenue between 2013 and 2020.
To put that in perspective, $1 trillion accounts for about 9 percent of all revenue that health insurers are expected to earn in the same period. It’s one-half of a percent of the country’s Gross Domestic Product. Add up the annual revenues of America’s five largest banks - Bank of America, J.P. Morgan, Wells Fargo, Wachovia and U.S. Bancorp- and you’re still about $500 billion short of what health plans can expect to lose if the Supreme Court decides against Obamacare.
“It’s the sheer size of the number that was startling,” says Bloomberg Government health care analyst Matt Barry. “I don’t know if people fully appreciate the stakes involved here. It’s not just politics - there’s a lot of money, and a lot to lose.”
Tuesday, May 15, 2012
C'mon, Scalito, Roberts, do it. DO IT! I dare ya...
I hope they spend more intellectual firepower on Obamacare, than they did on Citizens United: