tiptrot.com
tiptrot.com October 22, 2017


CBO: Withholding ACA Subsidies Would Send Premiums Soaring

17 August 2017, 07:33 | Mandy Simon

CBO: Withholding ACA Subsidies Would Send Premiums Soaring

Health Insurers Get More Time to Calculate Increases for 2018

Ending cost-sharing reduction payments could cause insurers to abandon the individual market in counties that contain 5% of the US population, according to a new projection from the Congressional Budget Office. Under Obamacare, insurance companies are required to reduce out-of-pocket costs like co-pays and deductibles for low-income customers who buy silver plans through the law's online exchanges. And that's taking into account the $118 billion the government would save from not having to make the CSR payments themselves.

"If the market does collapse, that's going to be a reflection of a choice the administration has made", Matthew Fiedler, a fellow at the Center for Health Policy at the Brookings Institute and former chief economist for Obama's Council of Economic Advisers, said in a July interview. After almost two years of deliberation, a federal district court concluded the House's claim had legal standing and allowed the case move forward in May, 2016.

The Obama administration appealed the ruling, allowing the payments to continue.

The Congressional Budget Office has issued a new report on the projected effects of terminating cost-sharing reduction subsidy payments under the Affordable Care Act, as President Trump has repeatedly threatened to do.

If these payments ended, some insurance companies would likely withdraw from Obamacare marketplaces. Trump tweeted out on July 29.


As worrisome as those projections appear, the CBO's assumption may underestimate the full impact of eliminating the subsidies, says Timothy Jost, a health care policy expert and emeritus professor at the Washington and Lee University School of Law.

Hundreds of USA counties are at risk of losing access to private health coverage in 2018 as health insurers consider pulling out of those markets in the coming months. "Silver plans differ from other plans because they must provide CSRs [cost-sharing reductions] to eligible enrollees: The actuarial value depends on the policyholder's income as a percentage of the FPL [federal poverty level for household income]". Nearly 6 million people qualified previous year. These payments are expected to total $7 billion this year. The insurers improve the plans with the payments. One of the reasons that United Healthcare's stock has been hitting a series of new all-time-highs this month is that the company is cutting its Obamacare coverage from 34 states in 2016 to 3 states in 2017, and possibly leaving Obamacare completely in 2018.

"Gross premiums for silver plans offered through the marketplaces would be 20 percent higher in 2018 and 25 percent higher by 2020-boosting the amount of premium tax credits according to the statutory formula", the congressional analysts said.

Moreover, it would increase the federal deficit by $194 billion over the first 10 years because the law would require a different federal fund to take its place. According to the CBO report, however, the market could remain stable without CSRs under certain conditions.



Other News

Trending Now

Thierry Henry Says Granit Xhaka Can Help Get The Best From Lacazette
When I go to the Emirates and I watch the game, it's 'Yes!' when we have the ball and 'No!' when the opposition does. And there is nothing worse than when players feel like you are not totally committed.

North Korea frees imprisoned Canadian pastor
His release comes two months after American college student Otto Warmbier was freed from North Korea, but died shortly after. A spokesperson for Trudeau would only confirm that a Canadian delegation is present in the internationally isolated capital.

Israel attempts to shut down Al Jazeera's office and ban journalists
Al Jazeera reported on its website that it was blocked from attending the news conference where Mr Kara made the announcement. The crisis ended when the Israeli authorities removed the newly installed security measures, including the metal detectors.

Tom Cruise ankle break halts "Mission: Impossible 6" production
Also, when you look at what was posted on the internet, you can see Tom do the same stunt multiple times. He performed the stunt again but this time, he was not able to latch on to the other building.

Worcester Police issues alert to find a 3-year-old baby girl
The two were found later Wednesday in a vehicle in a wooded area of Charlton , about 15 miles (24 kilometers) away. State Police troopers eventually found Rickheit and Ella either asleep or unconscious in the running vehicle .

Trump to launch investigation into China trade violations
Pyongyang this week threatened to fire missiles near the US territory of Guam during an exchange of bellicose rhetoric with Trump. An investigation by Lighthizer could possibly lead to tariffs against China and action through the World Trade Organization.

Unsatisfied Conte, unsatisfied Chelsea working towards a satisfactory common goal
Chelsea will now look to dust themselves down as they prepare for their Premier League opener against Burnley next weekend. Chelsea struggled to test Gunners goalkeeper Petr Cech , as Arsenal's midfield controlled the momentum of the game.

Betty Cuthbert dies, aged 79
Sydney 2000 Olympic Champion Cathy Freeman was one of those to follow in the esteemed footsteps of the sporting legend. Tributes have flowed for the former star, who has been remembered as a champion on and off the track.

Natalie Cole's Son Dead at 39
TMZ reveals that a man of 39 years old was found lifeless at his home in the San Fernando Valley (California), Monday, 14 August. Natalie Cole - an Evening with Brent Shapiro Foundation Summer Spectacular in Beverly Hills, September 14, 2014.

Isco Pens New Real Madrid Contract With Enormous Release Clause
Real Madrid's Marco Asensio and Diego Laxalt of Genoa have been linked with Liverpool but the Reds don't need any more wingers. Real Madrid star Isco has reportedly already put pen to paper on a new contract that includes a whopping release clause.