According to Hedgeye Healthcare analyst Tom Tobin, the industry faces a demographic problem that could “plague healthcare well into the mid-2020’s.”
“All your growth is in Medicare and there’s no growth in the commercially insured,” Tobin explains in the clip above.
“And, oh by the way, we just insured everybody we possibly could under the Affordable Care Act.”
Tobin expects a 43-percentage point difference between the prices charged for commercial insurance and the prices charged for Medicare.
In addition, margins could take a significant step down and the industry could see even more bankruptcies than it saw last year.
Watch the 3-minute clip above for more.
