Insurers have complained nonetheless.
"We remain concerned about the impact some provisions of the law will have on the affordability of coverage," wrote Robert Zirkelbach, a spokesman for industry trade group America's Health Insurance Plans (AHIP)
Of particular concern, according to Zirkelbach, is a tax on health insurance set to go into effect in 2014. According to AHIP's Web site, "the amount of the tax will be $8 billion in 2014, increasing to $14.3 billion in 2018, and increased based on premium trend thereafter. The Joint Committee on Taxation estimates that the health insurance tax will exceed $100 billion over the next ten years."
Health insurers face "abundant systemic anger," according to Brookings' Aaron, leading me to ask him whether their continuing profit growth and equity market outperformance might make the industry vulnerable to additional taxes.But he doesn't think that makes sense. "That will simply raise the price overall. They will charge more for whatever they do for you or for whatever insurance coverage they give and it won't materially have an impact on the incentives you face at the time you go in for health care," he said. Nonetheless, and despite his long-term bullishness on the health care industry's overall profit potential, Brookings' Aaron said he believes over the medium term the sector may very well face pushback on pricing. "A lot of of health care analysts believe that one of the reasons
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV