“Our market wouldn’t recover”
While President Trump is playing games with cost sharing reduction payments, insurance commissioners are becoming increasingly frustrated by what the uncertainty means for consumers: higher costs and loss of coverage. There will be no doubt who is at fault for those consequences if the White House fails to make these payments at the end of the month. Republicans own the health care system and will be held responsible for any changes that Americans see. It’s in their best interest to uphold their commitment under law to make the payments. From the New York Times:
“The insurance commissioners are frustrated with the gridlock in Washington, which they say threatens coverage for consumers and the solvency of some insurers. Without the payments, they say, consumers will face higher premiums in 2018, and more insurers will pull back from the individual insurance market.”
“‘It could be very damaging,’ Mr. Wright said. ‘Our market wouldn’t recover.’”
“With no guidance or clarity from the Trump administration, state officials are agonizing over what to do. Many expressed a sense of urgency, saying they needed to make decisions soon on rates to be charged in 2018.”
“Trump administration officials were invited to speak to state insurance regulators and were listed in the program for at least one public session, but they did not show up at that event to provide the promised update on federal policy.”
“‘Most of us are hoping and praying that this gets resolved,’ said David Shea, a health actuary at the Virginia Bureau of Insurance. ‘But that’s not the case right now.’”
“‘Carriers left in the Wisconsin market are smaller, local plans,’ Mr. Wieske said. ‘Particular carriers could have huge surges in population, going from 7 or 8 percent of their business in the individual market to 30 or 40 percent. If that’s the case, if it’s 30 or 40 percent of their business in the individual market, that’s obviously a gargantuan risk.’”
“The risks for consumers are also high, Mr. Wieske said. ‘Consumers,’ he said, ‘could be stuck in a zombie plan, an insurer that is essentially no longer able to do business in the worst-case scenario, or consumers may have to move to another insurer with different health care providers.’”
“Officials in many states must decide this month on insurance rates for next year.”
“‘We are holding off making those decisions until the very last possible minute,’ said Julie Mix McPeak, the Tennessee insurance commissioner. ‘In doing so, we are really making it difficult for consumers who need information about open enrollment — who’s participating in the market and what the rates might be. We don’t know the answers to any of those questions.’”