Study Shows Trump Responsible For Double Digit Increases In Health Insurance Premiums

Donald Trump inherited the Affordable Care Act in sound financial shape according to reports by the nonpartisan Congressional Budget Office and other independent studies. Republican attempts to abolish Obamacare have been unsuccessful, but a newly released study from the Kaiser Family Foundation shows that Donald Trump’s actions are resulting in double digit increases in premiums for many people, potentially destabilizing the plan. AP reports:

“Actions by the Trump administration are triggering double-digit premium increases on individual health insurance policies purchased by many people, according to a nonpartisan study.

“The analysis released Thursday by the Kaiser Family Foundation found that mixed signals from President Donald Trump have created uncertainty “far outside the norm” and led insurers to seek higher premium increases for 2018 than would otherwise have been the case.”

From the Kaiser Family Foundation report:

“Insurers in this market face new uncertainty in the current political environment and in some cases have factored this into their premium increases for the coming year. Specifically, insurers have been unsure whether the individual mandate (which brings down premiums by compelling healthy people to buy coverage) will be repealed by Congress or to what degree it will be enforced by the Trump Administration. Additionally, insurers in this market do not know whether the Trump Administration will continue to make payments to compensate insurers for cost-sharing reductions (CSRs), which are the subject of a lawsuit, or whether Congress will appropriate these funds. (More on these subsidies can be found here).

“The vast majority of insurers included in this analysis cite uncertainty surrounding the individual mandate and/or cost sharing subsidies as a factor in their 2018 rates filings. Some insurers explicitly factor this uncertainty into their initial premium requests, while other companies say if they do not receive more clarity or if cost-sharing payments stop, they plan to either refile with higher premiums or withdraw from the market. We include a table in this analysis highlighting examples of companies that have factored this uncertainty into their initial premium increases and specified the amount by which the uncertainty is increasing rates…

“Insurers assuming the individual mandate will not be enforced have factored in to their rate increases an additional 1.2% to 20%. Those assuming cost-sharing subsidy payments will not continue and factoring this into their initial rate requests have applied an additional rate increase ranging from 2% to 23%. Because cost-sharing reductions are only available in silver plans, insurers may seek to raise premiums just in those plans if the payments end. We estimate that silver premiums would have to increase by 19% on average to compensate for the loss of CSR payments, with the amount varying substantially by state.”

Most people enrolled in plans on the exchange receive subsidies and will be at least partially protected from these increases, but this is an extra burden on tax payers, along with those of us who do not qualify for subsidies. Double digit increases in premiums were commonplace on the individual market prior to the passage of the affordable care act, but this trend could have been avoided if not for the actions of Donald Trump and Congressional Republicans.

In May, Mario J. Mario Molina, M.D., former CEO of Molina Healthcare, wrote an op-ed for US News and World Report which also pointed out how Republicans are responsible for higher premiums due to their actions to sabotage the law. He concluded:

“One common thread in all these efforts is that Americans who purchase their health coverage through the individual market are the ones harmed, not insurance companies. The administration and Republicans in Congress want you to believe that insurers raising premiums for their plans or exiting the marketplaces all together are consequences of the design of the Affordable Care Act instead of the direct results of their own actions to sabotage the law. Don’t let them fool you.

“If you think Obamacare is failing, I have one simple message for you: Open your eyes and stop being the emperor.”

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