Healthcare Reform and Revenue Growth

While there is tremendous concern regarding the negative impact of Healthcare Reform (rightfully so), there are two important aspects of the legislation in the current versions of both the House and Senate legislation that will have a significant favorable impact on industry revenue.

The first is the expansion of coverage to the uninsured. It is widely known in healthcare policy circles that when insurance coverage is provided or increased the use of healthcare services, supplies, etc also increases. This is commonly called the insurance effect. My analysis points to an increase in industry revenue of $9 to $10 billion per year as a large proportion of the uninsured receive coverage.