Morning Briefing
Summaries of health policy coverage from major news organizations
Conflicting Reports On Future Of Subsidies Create Further Uncertainty For Insurers
Insurance plans really, really want to know what the White House plans to do on this particular program. But the administration isn't providing any clarity. Over the past 24 hours, it has sent reporters two statements that are difficult to parse 鈥 and definitely do not deliver on the certainty that insurers say would stabilize the Affordable Care Act marketplaces. (Kliff, 4/11)
The Department of Health and Human Services on Tuesday seemed to walk back a promise that the Trump administration would continue paying health insurance subsidies that insurance companies serving the individual market through the Affordable Care Act鈥檚 health insurance exchanges rely on to balance the cost of serving patients that consumer a large amount of healthcare. The administration, in a statement to The New York Times on Monday, had said that the plan was to continue paying the subsidies while courts adjudicate the claim, brought by Republicans in Congress, that the payments are illegal because they were not specifically authorized by the law. (Garver, 4/11)
The federal government spends $7 billion a year on these subsidies nationwide, and about $750 million of it goes to help low-income residents of California, like [Adeeba] Deterville. The future of the subsidies is in limbo: A lawsuit challenging the legality of the payments is on hold before a federal appeals court. The outcome is largely in the hands of the Trump administration, which has the power to continue or halt the stream of money. (Ho, 4/11)
Health insurers want more certainty about whether the government plans to keep paying them subsidies in order to decide whether to participate in the individual market exchanges next year. In a statement provided to Morning Consult last week, the Department of Health and Human Services said it hasn鈥檛 changed the precedent that it would keep paying the Affordable Care Act鈥檚 cost-sharing reduction payments to health insurers while a lawsuit about the subsidies continues. But that indication alone isn鈥檛 enough guidance for insurers that are preparing their premium rate requests. (McIntire, 4/11)
Meanwhile, one insurer聽made money off the health law exchanges聽鈥
The bond ratings agency Standard & Poor鈥檚 analyzed Blue Cross plans in 32 parts of the country and found that most are figuring out how to better set premiums to meet the cost of new enrollees as the Affordable Care Act exchanges begin their fourth year. Blue KC is a prime example. Insurance companies use a 鈥渕edical loss ratio鈥 to measure how much revenue they get in premiums versus how much they pay in policyholders鈥 medical costs. (Marso, 4/11)