Healthcare DIVE March 12, 2018
Dive Brief:
- Uncertainty in the individual market may lead to huge premium hikes over the next three years, a new Covered California report predicted.
- Covered California, which connects the state’s consumers with Affordable Care Act plans, said the Trump administration and recent congressional decisions exacerbated market instability. The group pointed to Congress ending the individual mandate penalty as part of the tax legislation, President Donald Trump’s promotion of association health plans (AHPs) and short-term catastrophic plans and the administration’s cuts to marketing and outreach for (ACA) exchange plans.
- The report said those actions could cause healthy ACA plan members to flee the marketplace by either dropping coverage altogether or enrolling in less expensive AHPs or catastrophic plans.