Affordable Care Act mandate repeal is driving prices up, customer choice down in individual insurance market
Robert Wood Johnson Foundation is projecting that fewer insurers will lead to higher premiums.
Fewer insurers, higher prices: That's the forecast from the Robert Wood Johnson Foundation, which found in a study that consumer choice has been reduced, and insurance premiums raised, due to policy decisions at the federal level.
Ten insurance companies operating in the Affordable Care Act's marketplaces, and interviewed by researchers, suggested they would be willing to provide insurance to the individual market but were concerned that the current policy environment would undermine stability.
At the heart of that concern was the government's repeal of the ACA's individual mandate. In the wake of that repeal, insurers compensated by increasing premiums in certain areas; the insurance companies interviewed in the report expected rising premiums to continue at least into next year.
Also contributing to spiking premiums is the end of cost-sharing reduction payments, which took place in 2017. Whether the reimbursements will commence at some point is still unclear, which researchers said has only created more uncertainty, with some saying the restoration of CSR payments could drive up prices for consumers.
[Also: Ranks of ACA market insurers plummet despite on-pace enrollment]
Also of concern to the 10 insurers is the administration's planned expansion of short-term and associated health plans, which they said could further destabilize markets -- although many expect they will offer such plans in order to stay competitive.
For its part, Congress has noted the market's instability, and this week will debate CSR payments and other stability measures, such as reinsurance, when they gather to hash out an omnibus spending bill that's due by Friday.
Whether the stability measures will be part of the final bill remains uncertain.
Twitter: @SusanJMorse
Email the writer: susan.morse@himssmedia.com
