The money, known as reinsurance payments, helped MDwise, Anthem, Humana, Assurant and the Physicians Health Plan of Northern Indiana keep a lid on their losses even as lots of new patients with expensive or untreated medical conditions migrated into the private insurance market.
Last week’s Supreme Court ruling upholding the tax credits for Obamacare is just the latest in a string of developments that have kept employers from ditching their group health plans, as many predicted they would.
For at least 20 years, Republicans have been pushing for giving tax credits to help individuals buy health insurance. The Supreme Court's latest Obamacare ruling does Republicans the favor of preserving them.
Cigna said Anthem's a risky bet due to fallout from its massive data breach, lawsuits that accuse it of conspiring to inflate prices, and lack of a growth strategy. But Wall Street thinks this deal is going to happen, unless Cigna can find another buyer.
The Obama administration could write a new regulation. Congress could pass a short law. States could run a low-cost exchange. But the politics might require all parties to let the tax credits die while they try to pin the blame on the other side.
Wall Street analysts say a purchase of Louisville-based Humana Inc., which reportedly has put itself up for sale, would by Indianapolis-based Anthem. An Anthem-Humana marriage would be the biggest merger in the history of U.S. health insurance.
It took $394,000 to rank in the top 1 percent of U.S. earners in 2013. And more than 100 of the Indiana contingent in that exclusive club were physicians employed by one of the four major hospital systems that operate in the Indianapolis area.
The individual hospital campuses around Indianapolis saw their collective revenue rise 8 percent and their collective operating profits rise 22 percent from from 2011 to 2013. That's solid, just not stellar, growth.