Study says Trump moves trigger health premium jumps for 2018
The analysis released Thursday by the
Kaiser researchers looked at proposed premiums for a benchmark silver plan across major metropolitan areas in 20 states and
The highest is a 49 percent jump in
About 10 million people who buy policies through HealthCare.gov and state-run markets are potentially affected, as are 5 million to 7 million more who purchase individual policies on their own.
Those in the government-sponsored markets can dodge the hit with the help of tax credits that most of them qualify for to help pay premiums. But off-marketplace customers pay full freight, and they face a second consecutive year of steep increases. Many are self-employed business owners.
The report found insurer participation in the ACA markets will be lower than at any time since they opened for business in 2014. The average is 4.6 insurers in the states studied, down from 5.1 insurers this year. In many cases insurers do not sell plans in every community in a state.
The researchers analyzed publicly available filings through which insurers justify their proposed premiums to state regulators. Insurers are struggling with sicker-than-expected customers and disappointing enrollment, and an industry tax is expected to add 2 to 3 percentage points to premiums next year.
On top of that, researchers found that mixed signals from the administration account for some of the higher charges. Those could increase before enrollment starts
"The vast majority of companies in states with detailed rate filings have included some language around the uncertainty, so it is likely that more companies will revise their premiums to reflect uncertainty in the absence of clear answers from
Insurers that assumed that Trump would make good on his threat to stop billions in payments to subsidize copayments and deductibles requested additional premium increases ranging from 2 percent to 23 percent, the report found.
Insurers that assumed the
"In many cases that means insurers are adding double-digit premium increases on top of what they otherwise would have requested," said
That doesn't sound like what Trump promised when he assumed the presidency.
In a
"There was a philosophy in some circles that if you can't pay for it, you don't get it," he added. "That's not going to happen with us."
People covered under President
But the
The administration sidestepped questions about its own role raised by the Kaiser study.
Spokeswoman Alleigh Marre said rising premiums and dwindling choices predate Trump.
"The Trump administration is committed to repealing and replacing Obamacare and will always be focused on putting patients, families, and doctors, not
The turmoil for people who buy individual health insurance stands in sharp contrast to relative calm and stability for the majority of Americans insured through workplace plans. The cost of employer-sponsored coverage is expected to rise about 5 or 6 percent next year, benefits consultants say.
This article has been corrected to show that the average number of insurers in the states studied is 5.1 in this year, not 5.7.
Associated Press Health Writer
Online:
Kaiser report: https://tinyurl.com/ya2yneqj
Business Briefs: Bellhops gives pizza to August movers
Trump continues taunts of Senate GOP leader over health care
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News