Obamacare Could Be Setting Up A Bumper Year For Insurers

On Wednesday, federal officials estimated that roughly 10 million people have enrolled in health insurance plans through the Affordable Care Act so far in 2015.

That figure includes people who were re-enrolled from last year’s coverage and also those who may have chosen a plan but have yet to pay their first month’s premium.

With the due date to sign up approaching on February 15, the White House said it was on track to achieve President Obama’s goal to have more than 9 million people with fully paid coverage by the end of 2015.

Insurers Use Past Experience To Move Forward

The enrollment rate has been welcome news for insurers as it signals a successful year ahead.

Companies like Anthem Inc ANTM, UnitedHealth Group Inc. UNH and Humana Inc HUM are expecting to see increased growth this year as they grow alongside the Obamacare exchange.

These companies participated in the exchange last year and saw modest earnings growth; but this year investors are expecting past experience to help improve their pricing schemes to better evaluate the influx of differing customers.

Obama Seeks Corporate Tax Restructuring

Medicaid Expansion

The President’s healthcare reform has also prompted several states to expand their Medicaid coverage, leaving insurers to scramble for coverage in states that have upped their investment in the program.

Anthem is a good example of a company taking full advantage of Obamacare’s success; the company’s CEO Joseph Swedish said the company is looking to target its expansion in those states where Medicaid plans are offered.

Other companies like Centene Corp CNC, Molina Healthcare, Inc. MOH and Health Net, Inc. HNT are also expanding in that space.