The goal of the 2010 health care reform bill is to expand health care coverage to the 32 million Americans who are currently uninsured. As part of the health insurance mandate, all individuals and businesses will be required to purchase health insurance. Starting in 2014, every individual will have to purchase insurance or pay a $695 annual fine. Meanwhile, employers with over 50 employees will be required to either purchase health insurance or pay a fine of $2000 per worker for every year they go without coverage. These provisions, while potentially prohibitive to consumers, have been welcomed warmly by the health insurance industry. Here is a look at the benefits the industry stands to gain from health care reform.

The Mandate Secures the Future Of Private Insurance

The health insurance mandate settles the debate between public and private insurance and secures the future for private companies. In fact, one of the most appealing aspects of the mandate is that it's better for the industry than the public option. Prior to the current reform bill, Congress considered a public option plan that would essentially provide government-run insurance. A criticism of this plan was that the government could provide lower prices for insurance and run the private companies out of business. Given that scenario, the mandate is a far better alternative for insurance companies.

The Mandate Will Drive Up Business For Insurance Companies

Requiring every individual and company to purchase health care will expand the customer base for insurance providers. State run exchanges will allow consumers to shop for insurance plans at competitive prices and subsidies will increase demand for insurance coverage. The provision requires the federal government to subsidize the premium costs from low-income individuals and families. This measure will ensure that insurance companies can attract new customers who will be reliable in paying their premiums.

The Mandate Will Help Insurers Cover Pre-existing Conditions

The health care bill prohibits insurance companies from barring individuals who have pre-existing conditions. While this would typically place companies in a vulnerable condition, the mandate will help companies recover their losses. When everyone is required to buy into the insurance pool, this helps insurance companies face the risks that are associated with offering coverage to high-risk consumers.

By 2012, the insurance mandate will take effect and all individuals will be required to have health insurance. The health insurance industry will have to make adjustments in order to prepare for the upcoming mandate. However, most insurers believe that the mandate will have a positive effect on the insurance industry. As more Americans receive access to health care insurance, insurers will be able to remain profitable and expand their services to accommodate a growing pool.