Some Health Insurers Bail On States Citing Trump-Fueled Uncertainty

President Donald Trump give the thumbs-up as he walks from Marine One across the South Lawn of the White House in Washington, Wednesday, Sept. 27, 2017, as he returns from Indianapolis. (AP Photo/Carolyn Kaster)
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On Wednesday’s deadline for insurance companies to submit their individual market rates to the federal government, North Dakota lost one of its three remaining companies. Citing “the uncertainty that currently exists around cost-sharing reductions,” the state’s insurance commission announced Thursday that the insurer Medica quit the state’s market, leaving just two options for consumers in North Dakota.

The Trump administration has for months publicly toyed with the idea of cutting off the billions in cost-sharing reductions (CSRs) paid to insurers who cover low-income people with severe health needs, but has so far made each monthly installment.

North Dakota Insurance Commissioner Jon Godfread said in a statement Thursday that Medica at first filed insurance rates assuming that the government would make the payments, and later submitted high rates assuming Trump would pull the plug on the subsidies. When the state rejected those higher rates, Medica quit the market.

The same Trump-fueled uncertainty triggered another major exit this week, with Anthem leaving Maine’s exchange.

“A stable insurance market is dependent on products that create value for consumers through the broad spreading of risk and a known set of conditions upon which rates can be developed,” Anthem spokesman Colin Manning said in a statement. “Today, planning and pricing for ACA-compliant health plans has become increasingly difficult.”

Congress is currently crafting a bill that would take the power to cut off CSRs out of Trump’s hands, guaranteeing a year or more of the funding and giving the individual market more stability. But negotiations stalled when Republicans prioritized taking another failed run at repealing Obamacare, and their success remains uncertain.

With the power to unilaterally cut off the subsides still in the hands of the administration, insurance companies and their customers have grounds to be skittish.

Sen. Lindsey Graham (R-SC), who met with President Donald Trump on Thursday to discuss health care, told TPM when he returned that the White House signaled its displeasure with continuing CSRs.

“The president really has a hard time writing checks to a failing program, doing something he thinks is outside the law,” he said. “I came away thinking that the president is not going to continue this practice forever. He’s not going to keep throwing good money after bad. He was in the mindset, to me, that these payments are a problem, but he wants to see what the market will bear.”

The non-partisan Congressional Budget Office calculated in August that cutting off CSRs would trigger premium increases of up to 25 percent over two years.

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Notable Replies

  1. Cut off the CSRs: make a program that you call “failing” actually fail. Kinda like not expanding Medicaid and then saying “see? it hasn’t expanded coverage.”

  2. Avatar for caltg caltg says:

    Whether they like it or not, the Affordable Care Act is the law of the land and Trump, Price, and the rest of these bozos are legally obligated to enforce and implement that law. Sabotaging the ACA and cutting the funding approved for its implementation is a dereliction of duty and should subject Trump to impeachment and Price to prosecution.

    As the GOP goobers love to say, "We are a nation of laws."

  3. Avatar for sandyh sandyh says:

    If there can be any silver lining to be found in this horrible situation that millions of ACA patients are being put into by Republicans, it’s that Bernie’s call for Single Payer then becomes the only solution. No insurers willing to step up? Then the government will have to provide those services…to everyone…as no employer or employee will be able to cover the escalating costs.

    Conservatives are too stupid and too irresponsible to realize that sickness strikes everyone when they least suspect it. Everyone must have coverage or the doctors and hospitals will end up going bankrupt from lack of payments and we will have to depend on American Indian medicine men.

    And you know that is one situation that no way that Republicans wants to be put in…to be put at the mercy of those they tortured on reservations daily. It’s becoming clear to voters that the GOP can’t provide the medical care the nation needs nor can they we treat our own illness, so Republicans will have to cave at some point and bow down to Bernie Sanders.

    Oh, happy day that will be. And it’s coming. There is no other way.

  4. Hey, why doesn’t the GOP try repealing Social Security as well since they’re doing so bloody well with everything else, since 2018 is going to be bloody for the GOP?

  5. While reducing choices, the number of companies offering insurance.

    Trump’s plan is not going to be either better or cheaper.

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