Anthem Throws Gauntlet Over Subsidies, Vowing To Leave Markets Or Raise Premiums Without Them
CEO Joseph Swedish sets a deadline of early June for a decision on the cost-sharing reductions, saying Anthem would weigh increasing rates by at least 20 percent next year without them.
The New York Times:
Anthem Threatens To Leave Health Exchanges If Subsidies Are Halted
Even as Anthem, one of the nation’s largest insurers, reported an improved financial picture for the last year, the company warned on Wednesday that it would consider leaving some federal health care marketplaces or raising its rates sharply if the government does not continue subsidies to help low-income people. (Abelson, 4/26)
The Associated Press:
Insurer Anthem Hands Feds Deadline On Crucial ACA Subsidies
Anthem CEO Joseph Swedish said his company may ask for more rate increases, stop selling certain products or leave some markets if it doesn’t have some assurance on the subsidies. Indianapolis-based Anthem Inc. sells coverage on exchanges in 14 states, including key markets like California, New York and Ohio. If the subsidies go away, customers could see rate hikes of 20 percent or more, Swedish told analysts during a conference call to discuss his company’s first-quarter results. Tack on another 3 to 5 percent if a health insurance tax returns from its moratorium this year. (Murphy, 4/26)
The Wall Street Journal:
Anthem Says Loss Of Federal Health Payments Could Cause 20% Premium Hike
Anthem’s position on the ACA marketplaces is being closely watched because of its reach—it is a major presence in 14 state exchanges, with nearly 1.6 million people enrolled in its ACA plans, 1.1 million of those bought through the marketplaces. Currently, 302 counties in states including Georgia, Missouri and Ohio have only Anthem plans available on their marketplaces, according to the Kaiser Family Foundation. (Wilde Mathews and Hufford, 4/26)
Bloomberg:
Anthem Threatens Higher ACA Rates If Funds For Poor Stop
Anthem Inc. threatened to raise rates for its Obamacare plans next year if the U.S. government stops funding subsidies for lower-income customers, putting pressure on the administration and Republicans to support a key piece of the health law. Chief Executive Officer Joseph Swedish said on a conference call Wednesday that the insurer could raise its rates by 20 percent if the subsidies aren’t paid to insurers. The subsidies are currently the subject of a political debate in Washington and it’s unclear whether President Donald Trump’s administration will continue to fund them. (Edney, 4/26)
In other news on Anthem —
Bloomberg:
Express Scripts Whipsaws Amid Public Soap Opera With Anthem
A 15-month fight between Anthem Inc. and Express Scripts Holding Co. spilled into public view again this week as the companies traded volleys over whether or not the insurer will renew its pharmacy benefit management contract with Express Scripts at the end of 2019. On Monday afternoon, Express Scripts shares plunged after the company said that it had been told by Anthem, its biggest customer, not to bother making an offer for the contract. Then, Wednesday morning, Anthem’s CEO said not so fast -- the insurer had made no decisions yet. Observers were left scratching their heads about what is going on. (Langreth, 4/26)
