ACA Round-Up: Enrollment Report, Repeal Efforts, And More (Updated)

This report is intended to counter recent claims that the individual insurance market is in a “death spiral, collapsing of its own weight.” The report first asserts that continued growth in individual market enrollment, as reported in the contemporaneous CMS report, establishes that 2017 premium increases are not having substantial adverse effects on individual market enrollment. Because premium increases are largely covered by increased premium tax credits for most enrollees, the premium increases are not deterring consumers from coverage. Enrollment is essentially growing at the same rate in areas with high as compared to low premium increases. And claims costs do not seem to be increasing as premiums increase, which would be expected were a market in a death spiral. Second, the report contends that the 2017 premium increase are an attempt by insurers to catch up from initial underpricing premiums during 2014 and 2015. They also reflect the phasing out of the reinsurance program, which subsidized premiums for the first three years. They are not based on claims growth, as claims for marketplace insurers grew more slowly than claims in private insurance overall in 2014 and 2015. In fact, premium growth has been greatest in areas where premiums were initially the lowest, suggesting that initial underpricing has been a major reason for recent premium increases. Finally, changes insurers have made in premiums and plan design, together with recent policy changes such as those...
Source: Health Affairs Blog - Category: Health Management Authors: Tags: Following the ACA Insurance and Coverage advance premium tax credits open enrollment risk corridor payments Source Type: blogs