Associated
Press
WASHINGTON (AP) — As online window shopping on HealthCare.gov went
live Wednesday, an independent analysis found that premiums for the most
popular health plans under the Affordable Care Act are rising by an average 34
percent next year.
The analysis of newly released government data by the
consulting firm Avalere Health found that the Trump administration's actions
are contributing to the price hikes, adding instability to the underlying
problems of the health law's marketplaces.
The 34 percent average increase is for silver plans in
states using HealthCare.gov.
Premiums also are going up by double digits for plans with different levels of
coverage, including bronze (18 percent), gold (16 percent), and platinum (24
percent).
Many states had higher increases for silver plans, the most
commonly purchased. Only three states will see declines.
Avalere found that average silver plan premiums will go up
by 49 percent in Florida, 43 percent in Missouri, and 65 percent in Wyoming.
Avalere said market instability is driven by the continued
debate over "Obamacare" repeal and replace, President Donald Trump's
recent decision to end subsidy payments to insurers, and the president's
executive order that could open a path for lower cost plans outside of the
Obama-era law.
"We're seeing this marketplace instability lead to
large jumps in premiums and fewer health plan offerings," said Chris
Sloan, a senior manager with the health industry consulting firm.
Significant rate increases also are expected in the 11
states and the District of Columbia that run their own health insurance
websites.
Consumers eligible for income-based tax credits will be
protected from rising premiums but those who pay full-cost face a second
consecutive year of sharp premium increases.
On Wednesday, officials at the Health and Human Services
Department posted plans and premiums for the coming year on HealthCare.gov so
consumers can begin "window shopping." Starting next week, on Nov. 1,
new customers can submit applications, and returning ones can make changes to
their coverage. Open enrollment will end early, on Dec. 15, about half the time
allotted under Barack Obama's administration.
The Trump administration's launch comes after the
president abruptly pulled the plug on federal payments that reimburse insurers
for reduced copays and deductibles they're required to provide to people of
modest means. That exposes insurers to a potential $1 billion loss for the
remainder of this year, and state regulators have been approving premium increases
for next year to compensate.
In Rhode Island, the state insurance marketplace announced
an 18 percent to 20 percent increase and dubbed it a "Trump tax."
Administration officials say the payments were not properly approved by
Congress and Trump is following the U.S. Constitution by denying them.
Bipartisan legislation to resolve the problem is pending,
and Wednesday the Congressional Budget Office said the bill would reduce
federal deficits and "would not substantially change the number of people
with health insurance coverage." The outlook for the legislation,
sponsored by Sens. Lamar Alexander, R-Tenn., and Patty Murray, D-Wash., is
uncertain. Trump has sent mixed signals about whether he would support it.
About 10 million people currently have private health
insurance through government-sponsored markets like HealthCare.gov.
More than 8 in 10 customers receive tax credits to help pay their premiums, and
that aid is still available despite the political turmoil.
Unlike the Obama years, the Trump administration has set
no enrollment goal for 2018.
"We are really focused on having a smooth consumer
experience," said Randy Pate, director of the HHS office that oversees the
program. "That is our target for this year."
Administration officials say they have made a series of
improvements to the sign-up process unheeded in the acrimonious political
debate over health care.
Among them:
— Greater use of plain language on HealthCare.gov and
easier searches for covered prescription drugs and network medical providers.
— An option to request a call-back from the federal
consumer assistance center, which is intended to minimize long hold times.
— An online option for consumers to request enrollment
assistance from a private insurance agent or broker in their area. (This move
could prove controversial, since the administration also cut funding for
nonprofit programs that provide enrollment assistance.)
"These premium hikes sound scary, but the reality is
that in most cases consumers won't be paying that much," said Larry Levitt
of the nonpartisan Kaiser Family Foundation, who has followed the health law
from its early days. "Those receiving subsidies from the government to
help pay their premiums will be shielded from any increase at all because the
government subsidy will rise along with the premiums."
That's not the case, however, for an estimated 7 million
unsubsidized customers, most of whom buy individual plans outside the
government markets.
"There is a danger that middle-class people who don't
get government help in paying their premiums could be increasingly priced out
of the market," he said.
No comments:
Post a Comment