Health insurance companies used to collect a majority of their premium dollars from people who had coverage through their jobs, but their growing stake in running government health care programs has consumed a larger share of premiums over the past decade.

The big picture: Don't expect this to slow down. More low-income people have gained private Medicaid coverage through the Affordable Care Act, more states are privatizing their Medicaid programs, and more seniors are switching to privately run Medicare Advantage plans.

By the numbers, per data from credit ratings agency A.M. Best:

  • Managed Medicaid, in which states outsource their programs to health insurers, represented only 10% of insurer premiums in 2007. That ballooned to 27% as of last year.
  • Medicare Advantage rose from 17% of premiums in 2007 to almost 25% in 2017. Republicans and Democrats support the program, but it has been tied to waste and over-billing.
  • Commercial premiums have declined from 58% in 2007 to 38% last year.
  • The commercial portion includes the ACA's individual exchanges, where taxpayers cover the vast majority of enrollees' premiums.

The bottom line: Taxpayers are directly funding more of the operations of the health insurance industry.

The other side: A.M. Best said a larger share of government health care programs poses financial and political risks for insurers due to "a greater reliance on state and federal funding, as well as a growing dependence on federal rules and regulations."

Go deeper

Dan Primack, author of Pro Rata
46 mins ago - Economy & Business

White House pushes to uphold TikTok ban

Illustration: Aïda Amer/Axios

The U.S. Department of Justice on Friday filed legal opposition to TikTok's request to delay a ban on downloading the app, with a judge expected to rule before the ban is set to go into effect Sunday.

Why it matters: The White House could have simply postponed the ban on its own for another week or two, as it did last Friday. This move suggests it's seeking to use the ban as leverage in ongoing negotiations.

59 mins ago - Podcasts

Substack and the future of media

Traditional media models, and even some of the digital ones, are either under pressure or outright broken. Some journalists have responded by going out on their own, leveraging a new group of startups that help them self-publish and monetize their work.

Axios Re:Cap digs in with Chris Best, CEO of Substack, which has more than 250,000 paying subscribers on its writer network.

Updated 1 hour ago - Politics & Policy

In photos: Ruth Bader Ginsburg lies in state at Capitol

A bipartisan group of female lawmakers line the steps of the Capitol as Ginsburg's casket is carried to a hearse. Photo: Jose Luis Magana/AFP via Getty Images

The late Supreme Court Justice Ruth Bader Ginsburg laid in state at the Capitol on Friday, the first woman and the first Jewish person to receive such an honor.

Driving the news: After a ceremony in National Statuary Hall, Ginsburg's casket was carried down the building's steps — flanked by a group of bipartisan female lawmakers for a final farewell.

Get Axios AM in your inbox

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Subscription failed
Thank you for subscribing!