Insurers Plan To Spend $500 Million In Obamacare Advertising Next Year

[DonViejo]

Source: TPM



DYLAN SCOTT – DECEMBER 16, 2013, 9:35 AM EST

Insurance companies plan to spend a combined $500 million in local television advertising in 2014, according to the Washington Post -- more than double what they spent in 2012.

There is one obvious culprit: Obamacare.

Insurers look at these next few years as a gold rush. Tens of millions of people will be buying private insurance of the exchanges. It's a swarm of customers like nothing they've ever seen. And they plan to capture them — even if they need to spend hundreds of millions of dollars to do so.

The Wall Street reported Monday that WellPoint will spend $100 million by the end of the year after having held off because of problems with HealthCare.gov.

The ad blitz from insurers comes at the same time that the Obama administration and outside advocates are upping their outreach efforts ahead of the Dec. 23 deadline to sign up for coverage that starts in January.

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Read more: http://talkingpointsmemo.com/livewire/obamacare-insurance-companies-tv-advertising

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[L0oniX]

1. That ad money comes from.... your premiums ass.

Just saying ...whether its a car or insurance or that new drug ad ...the money comes from you when you buy it.

[ag_dude]

2. The difference here is the regulations limit the margins.

The maximum amount they can take out of your premium for marketing, administration, profit, etc. is set by the law so they're not jacking up the prices for the marketing.

It's more like accepting a lower profit margin for more sales rather than jacking up premiums.

[L0oniX]

4. Apparently they have plenty of money already ...from before ACA.

[SoapBox]

6. LOL...exactly.

So...single payer and take this greedy scum out of the loop.

[RC]

3. Now it is starting to come out why the insurance companies like the ACA.

More people, more profits. If they can afford all that money for advertising, how many new corporate jets, yachts and mansions will be purchased?
Actually, what do the insurance companies need to advertise for? Why not let the US Government do the advertising for them?

[vinny9698]

5. It is called Marketing 101

Insurance companies will advertise to get their market share. ACA limits their overhead, but more market share is the name of the game. 20% of a larger number is more profit for them.