In this A.M.BestTV episode, A.M. Best Senior Director Sally Rosen and Senior Financial Analyst Wayne Kaminski examine provisions of the Patient Protection and Affordable Care Act (ACA) that might be subject to repeal and how their removal could affect U.S. health insurers. Click on http://www.ambest.com/v.asp?v=aca117 to view the entire program.
The episode follows the release of a Best's Briefing on the subject. To access the full copy of this briefing, titled, "Potential Impacts of the Repeal of the ACA," please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=257915.
Rosen addressed the potential impact of the repeal of premium and cost-sharing subsidies.
"Premium subsidies are paid by the government to insurance companies for individuals who qualify. As a result, the insurance companies get a portion of the premium for those individuals from the federal government. Cost-sharing subsidies are for qualified individuals who are getting a premium subsidy and select a silver plan, and they also get a portion of their out-of-pocket costs paid for by the government. Should either subsidy go away, that money would no longer flow to the insurance companies and they could be left with a premium shortfall," said Rosen.
Although the A.M. Best evaluation does not consider the impact of a replacement plan, Kaminski discussed the viability of a return to high-risk pools, which Congressional leaders have suggested in the past as part of a replacement. Kaminski noted that high-risk pools are "very complex in structure, with eligibility requirements that are set by states. A really stable platform of funding is required for them to be workable."
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A.M.BestTV covers exclusive A.M. Best information and reports, targeted topics and key developments in the (re)insurance industry every Monday, Wednesday and Friday. Sign up for alerts of episodes at http://www.ambest.com/multimedia/ambtvsignup.html. View A.M.BestTV episodes at http://www.ambest.tv.
A.M. Best is the world's oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright 2017 by A.M. Best Company, Inc. and/or its subsidiaries. ALL RIGHTS RESERVED.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170127005586/en/
Contacts:
A.M. Best
Lee McDonald, +1 908 439 2200, ext. 5561
Group Vice President, Publication and News Services
lee.mcdonald@ambest.com
