Obamacare Architect: ‘Insurance Companies As We Know Them Are About To Die’
WASHINGTON (CBS DC) — One of the architects behind President Barack Obama’s Affordable Care Act believes that “insurance companies as we know them are about to die.”
Ezekiel Emanuel, a former White House senior health adviser and fellow at the Center for American Progress, wrote in an op-ed for the New Republic published Sunday that Obamacare will force insurance companies to “evolve or become extinct.”
“The system is changing. As a result, insurance companies as they are now will be going away,” Emanuel wrote.
In the op-ed, the brother of Chicago Mayor Rahm Emanuel detailed that accountable care organizations will compete in the health care exchanges and also seek contracts with employers.
“These new organizations are delivery systems with networks of physicians and hospitals that provide comprehensive care. This health delivery structure is in its infancy,” Emanuel stated. “Today there are hundreds of these organizations being created and gaining experience within government-sponsored programs or getting contracts from private insurers.”
Emanuel predicts that hospital systems and accountable care organizations will become “integrated delivery systems” like insurance companies.
“[T]hey will cut out the insurance company middle man – and keep the insurance company profits for themselves,” Emanuel said. “Therefore, increasingly these ACOs and hospital systems will transform themselves into integrated delivery systems, entering insurance exchanges and negotiating with employers, in direct competition with insurance companies.”
Last month, Emanuel said these ACOs will replace insurance companies by 2025. He also said he believes that more hospitals will close.
“Hospitals are a grossly inefficient way of providing jobs,” he told a Princeton University lecture hall, according to The Daily Princetonian. “We don’t need 5,000 hospitals.”
According to The Hill, the White House has implemented another Obamacare delay, allowing health insurers to continue offering plans that were originally canceled due to the law.