‘We Anticipated This’: Insurers Not Exactly Floored By Trump’s Decision
It could be hard for insurers to pull their plans off the market for next year, but most companies say they were prepared for the money to evaporate anyway and had baked the contingency into their 2018 premium increases. However, the industry is calling on Congress to fund the payments.
The Wall Street Journal:
Major Health Insurers Anticipated End Of Subsidies
Several major insurers said they intend to provide health plans on the Affordable Care Act’s exchanges for the rest of this year and for 2018, despite a financial blow from President Donald Trump’s cancellation of federal cost-sharing payments. The payments, which had been expected to total $7 billion this year, will be “discontinued immediately” because their continuation violates federal law, the Department of Health and Human Services said Thursday. Payments due to go out on Wednesday will be canceled, the administration said in a legal filing. (Wilde Mathews, 10/13)
Bloomberg:
Obamacare Insurers, States Rush To React To Trump's Latest Move
States regulators and health insurers are rushing to react to the latest move by the Trump administration to dismantle parts of the Affordable Care Act, less than three weeks before their citizens and customers start signing up for coverage. President Donald Trump’s administration said this week it wouldn’t pay subsidies to insurers that are used to help lower-income people with medical costs. In response, some regulators say they’ll need to reconsider the rates health insurers can charge -- a move that could lead to sharp increases in states such as Colorado, Oregon and Maryland. (Tracer, 10/13)
The Hill:
Insurers Push Back Against Trump's Cuts To ObamaCare Subsidies
Health care consumers will suffer from President Trump's decision to cut off ObamaCare's cost-sharing reduction (CSR) subsidies, two of the largest insurance trade groups said in a statement Friday. “This action will make it harder for patients to access the care they need. Costs will go up and choices will be restricted,” the Blue Cross Blue Shield Association and America’s Health Insurance Plans said in a joint statement. (Weixel, 10/13)
The Hill:
Insurers Call On Congress To Act On ObamaCare Payments
Several health groups, including insurers and hospital associations, signed a joint letter to House and Senate leadership on Saturday, urging Congress to fund cost-sharing reduction (CSR) benefits, following President Trump's decision to halt the key ObamaCare payments. "There will be serious consequences without Congressional action: millions will face higher premiums, fewer choices, and less access to the medical care they need. Let’s work together on solutions that deliver the access, care, and coverage that the American people deserve," the letter said. (Manchester, 10/14)
Bloomberg:
Centene, Hospitals Slide On Trump's Plan To Stop Subsidies
Insurer Centene Corp. fell the most in almost a year and hospital operators including Tenet Healthcare Corp. dropped after President Donald Trump cut off Obamacare subsidies, a move that could destabilize the market and hurt company earnings, credit ratings and dealmaking. The announcement is fueling fears that the payments, known as cost-sharing reduction subsidies, may end immediately, which could hurt hospitals and those insurers still in the marketplace. Fourth-quarter and 2018 earnings for hospitals are “now at risk” and current estimates are probably too high, Mizuho Securities analyst Sheryl Skolnick wrote in a note to clients. (Flanagan and Rausch, 10/13)
