The exclusion of measures to stabilize the health insurance marketplace from the omnibus spending package passed last week by the US Congress has revived concerns about sharp premium increases next year in both the individual and group health insurance markets.
A bipartisan plan had been in the works to add such measures to the spending bill, including four years of funding for the cost-sharing reduction (CSR) subsidies prescribed in the Affordable Care Act, billions of dollars in reinsurance funding to help insurance plans cover high-cost patients, and a provision opening up low-cost, catastrophic insurance plans to buyers over 30, Vox health care analyst Sarah Kliff explained last week. Negotiations broke down, however, after Democrats balked at Republicans’ insistence on including these limited-coverage plans in the legislation and reintroducing a ban on providing reinsurance funds to any insurance policy that covers abortion.
As a result, Jeri Clausing reports at Employee Benefit News, benefits experts and employers are now expecting premium hikes of as much as 30 percent in 2019. While the policies in question mainly concern the individual insurance market, the resulting cost issues stand to affect employer-sponsored health coverage as well:
“Destabilization increases uncompensated care, resulting in cost-shifting from healthcare providers to large employer payers,” Ilyse Schuman, senior vice president of health policy for the American Benefits Council, said earlier this month. …