- Posted June 29, 2012 by
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Are you living without health insurance?
Some Cornfield Businesses to Benefit from ACA
While the Affordable Care Act with its tax on medical devices may be the death knell for that industry in Indiana, for other busineses in the Cornfield, the ACA may provide benefits.
For the pharmaceutical industry, the decision amounted to a “slightly good thing,” Telthorst said. Indianapolis-based drug maker Eli Lilly and Co. saw its stock price rise Thursday, but only a slightly, up 17 cents to close at $42.10.
Lilly spokesman Greg Kueterman said the court’s upholding of the law means, “We continue to do what we have been doing — helping to implement this law. The court said we have to implement it and we are going to continue to do that.”
The company has criticized the new act for its creation of an Independent Payment Advisory Board that will gain say over Medicare funding for drugs. Keuterman reiterated Lilly’s criticism Thursday, saying the new government panel gives “a board of bureaucrats ..... unchecked authority to make cuts to the Medicare program really using cost as the only cause,” he said.
In a statement, Lilly Chairman, President and Chief Executive John Lechleiter said that “even with today’s decision, we expect that the debate about health care and health coverage will continue, and that further reforms and changes are likely in the years ahead.”
The legal decision also has big implications for Indianapolis-based WellPoint, the second largest insurer in the country and by far the largest in Indiana. About 4.million Hoosiers are covered under the company’s subsidiary, Anthem Blue Cross and Blue Shield in Indiana. It also employs about 4,300 people in Indiana.
Many issues remain unresolved for health insurers. While WellPoint will benefit from a large influx of new customers, it will also be required to offer policies to people with pre-existing medical conditions, and premiums will be determined by community ratings.
Angela F. Braly, president and CEO of WellPoint, was not in town Thursday and was unavailable for comment, company spokesman Tony Felts said. The company released a statement, saying: “The road to implementing health-care reform will be a challenge; however, we look forward to working constructively with policymakers and other key stakeholders to build a health-care delivery system that provides security and affordability to all Americans.”
WellPoint’s stock price fell $3.59, or about 5 percent, to close at $65.90. Its rivals fared better, with UnitedHealth up slightly and Aetna down 2.71 percent. Analysts have said WellPoint had more at stake in the decision than other insurers, which tend to be more diversified.
The big question for WellPoint and other insurers is whether the larger customer pool will offset the expense of the new coverage requirements.
From the Cornfield, the full effect of the ACA will not be known until at least 2014.