The Effect of Policy Changes on ACA Insurers—A National Perspective > Hospital Association of Pennsylvania


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The Effect of Policy Changes on ACA Insurers—A National Perspective

July 08, 2019

As the future of the Affordable Care Act (ACA) remains under discussion, new reports are looking at how insurers selling individual plans, despite policy changes, have continued to remain profitable.

In 2018, the Trump Administration ceased cost-sharing subsidy payments and significantly reduced funding for outreach to potential plan participants. Insurers responded by raising benchmark premiums by an average of 34 percent nationally. This was a key factor in making 2018 the most profitable year for individual market insurers.

A similar report states that premiums fell slightly during 2019. The Administration’s decision to eliminate the individual mandate penalty along with other policy changes are cited as reasons why premiums in 2019 did not continue to drop.

Generally speaking, rural areas continue to remain fragile with higher premiums, but on average, the individual market continues to appear stable. Many insurers are filing proposed rates for 2020 that include only modest premium increases.

In Pennsylvania, the ACA has been instrumental in helping more than 1.1 million people obtain and keep health insurance coverage and get better access to quality health care services.  It has dramatically reduced the uninsured population in Pennsylvania, and HAP continues to promote the importance of coverage for consumers, and advocate for policies that support the goal of access to high-quality care.

If you have questions relating to this issue, and the impact of coverage, please contact Jolene Calla, Esq. HAP’s vice president, health care finance and insurance. Questions regarding HAP’s federal advocacy efforts should be directed to Laura Stevens Kent, HAP’s vice president, federal advocacy.

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