A recent analysis of factors effecting healthcare premium rates for 2018 reveals that political punditry from the Trump administration is contributing to anticipated rate increases. Insurers are currently determining rates for next year, which must be submitted to regulators this month.
Oliver Wyman Actuarial Consulting’s analysis concludes rate increases will largely be the result of uncertainty created by two primary factors. One factor is the Trump administration’s refusal to commit to reimbursing payers for subsidized policies. These are the policies that help those with lower incomes afford health care coverage.According to the report, “…Congress and the administration have failed to provide
According to the report, “…Congress and the administration have failed to provide clarity on whether payers will be paid for providing CSR policies in 2018.” The Trump administration is also refusing to enforce the individual mandate. This is the second main variable causing increases in healthcare premiums for 2018. The purpose of the individual mandate is to encourage healthy individuals to purchase policies through the healthcare exchange in order to help offset costs of care for those who are less healthy, therefore expanding coverage to more people. The uncertainty created by the administration’s lack of commitment to the mandate is estimated to account for about 9% of the total rate increase, although the contributing increase may be over 20% in some areas.
Oliver Wyman projects typical rates to increase from 28-to-40% in 2018 if the individual mandate is not enforced and subsidies are not reimbursed.