Mid-term elections see Republican Party take majority of political power in the country
Mid-term elections in the United States have come and passed and now the Republican Party is in control of Congress. This could have major implications for the health insurance sector, as many Republicans have been opposed to the Affordable Care Act and its various provisions. With control of Congress, Republican lawmakers may be able to introduce yet more reform to the health care system, and some may push to have certain provisions of the Affordable Care Act repealed in the future.
Lawmakers may push to make changes to the health care system and insurance sector
Republican lawmakers are expected to be more vocal about insurance regulations in many states and some analysts suggest that lawmakers may move to reduce the authority that the Federal Reserve has over insurance companies operating throughout the country. Political analysts predict that there may soon be a push for more transparency in the regulatory process, while also introducing measures that would make it more difficult for some government committees to impose regulations on health insurance companies.
Major changes to the Affordable Care Act may be possible, but unlikely
A changing political structure can have a major impact on the insurance sector, largely because the two go hand-in-hand on many occasions. The Affordable Care Act is one of the clearest examples of how politics affects the insurance space. The federal law has made significant changes to the way the country’s health care system works, and some of these changes have not been well received by insurers or Republicans. While many Republicans have voiced their desire to change the Affordable Care Act, or repeal it entirely, lawmakers may only be able to introduce very modest changes to the insurance sector over the next two years.
Lawmakers may look to limit the power of the Consumer Financial Protection Bureau
One of the changes that the insurance industry is expected to see has to do with the Consumer Financial Protection Bureau. Lawmakers may be tweaking the agency’s regulatory power in the coming months, changing the standards that the agency uses to designate a company as systemically important. Ongoing political divisions may make any significant changes impossible, but Republicans may have relatively little trouble introducing a series of small changes that add up over time.