Tag: premium increases

Estimated Increases in 2019 Premiums by Congressional District Due to ACA Sabotage

The following article by Emily Gee and Aditya Krishnaswamy was posted on the Center for American Progress website July 24, 2018:

A couple explores different insurance plans available under the Affordable Care Act on November 1, 2017, in Miami.

This column contains a correction.

Over the past two years, the Trump administration has worked tirelessly to sabotage the Affordable Care Act (ACA). The U.S. Congress’ repeal of the individual mandate penalty and the Trump administration’s actions to expand the availability of skimpy short-term plans are raising premiums for middle-class families. In its latest attack on the individual market for health insurance, the Trump administration also slashed funding for enrollment assistance by 72 percent and halted payments for risk adjustment, the federal program that discourages plans from avoiding sicker enrollees.

Last year, President Donald Trump’s decision to end cost-sharing assistance payments resulted in staggering increases in 2018 marketplace premiums, and these more recent attempts to destabilize the individual market will result in even higher rates for 2019. Although tax credits rise with premiums and therefore insulate lower-income individuals from higher costs, many middle-income families who buy insurance on their own will see 2019 premiums thousands of dollars higher than they would be if the Trump administration allowed the ACA to work as intended. Based on rate information to date, the Center for American Progress estimates that an unsubsidized 40-year-old will pay an extra $970 in marketplace premiums on average in 2019 because of the end of the mandate and the expansion of short-term plans. Continue reading “Estimated Increases in 2019 Premiums by Congressional District Due to ACA Sabotage”

The Trump Premium Tax Will Increase Premiums Up to $2,500 Next Year

The following article by Sam Berger and Emily Gee was posted on the Center for American Progress website August 16, 2017:

Credit:  Tom Williams/CQ Roll Call file photo

Since he entered office, President Donald Trump has taken numerous steps to sabotage the Affordable Care Act (ACA) by driving up costs and driving out insurers. With the failure of ACA repeal in the U.S. Senate, Trump has threatened to accelerate his efforts. In particular, by undermining enforcement of the ACA’s individual coverage mandate and threatening to stop billions of dollars in cost-sharing reduction (CSR) payments that help lower consumers’ deductibles and copayments, Trump will significantly increase 2018 premiums.

The evidence from insurers’ initial rate filings show that individual insurers have added as much as 20 percent to account for lax enforcement of the mandate and as much as 23 percent to account for the lack of CSR payments. The end result is higher premiums for consumers and higher costs for taxpayers. The Center for American Progress estimates that uncertainty around CSRs and mandate enforcement will raise 2018 premiums for benchmark coverage an extra $1,061 annually for a 40-year-old and $2,491 annually for a 64-year-old. Continue reading “The Trump Premium Tax Will Increase Premiums Up to $2,500 Next Year”