ACA to offer more choices
Trump team trying to take credit for health law’s stability
WASHINGTON — Consumers will have more health insurance choices next year under the Obama health care law and premiums will dip slightly for many, the Trump administration announced Tuesday.
President Donald Trump was elected on a promise to repeal Obamacare, but the program has stabilized three years into his administration.
That may be short-lived. The administration is asking a federal appeals court in New Orleans to overturn the entire Affordable Care Act, or ACA, as unconstitutional, an overhang of uncertainty clouding its future.
For now, the Department of Health and Human Services is touting a second consecutive year of positive-sounding numbers. An additional 20 insurers will participate for 2020, expanding consumer choice in many states, officials said. Nearly 70 percent of customers will have three or more insurers from which to pick a plan.
About 10 million people are covered through the health law’s insurance markets, which offer taxpayer-subsidized private plans for people who aren’t covered on the job. Former President Barack
Obama’s namesake law will be 10 years old next year.
Premiums for a hypothetical 27-year-old choosing a standard plan will decline 4% on average in 2020 for states served by the federal HealthCare.gov website, the Trump administration said. About a dozen states run their own sign-up websites, but most rely on HealthCare.gov.
A low-cost midrange plan for that hypothetical 27-year-old will charge monthly premiums of $374 next year, officials said. The law’s income-based subsidies can drop that to around $50.
However, people who don’t qualify for incomebased assistance must pay full price, and that’s before any deductibles and copays. Unsubsidized customers may just decide to go uninsured, particularly if they’re healthy.
A previous Republican Congress repealed the law’s unpopular penalty — fines for going without coverage — to get more people signed up.
Even as it pursues the ACA’s demise in the courts, the Trump administration is trying to take credit for the program’s current stability.
“Until Congress gets around to replacing it, the president will do what he can to fix the problems created by this system for millions of Americans,” HHS Secretary Alex Azar said. “The president who was supposedly trying to sabotage this law has been better at running it than the guy who wrote it.”
Independent experts say it’s more complicated than that.
They credit the Trump administration for working with a dozen states to approve waivers that can bring down premiums by setting up a backstop system to pay bills from the costliest patients.
However, experts say the original design of the law’s subsidies is probably the major stabilizing force. People eligible for financial assistance are insulated from price spikes because they pay only a fixed percentage of their income. Because their own costs didn’t change much, customers with subsidies kept coming back to the market through years of double-digit increases in list-price premiums.
Experts say yet another factor is that insurers that have stuck with the program have learned over time how to operate profitably.
Although the program is stable, enrollment has been slowly eroding since Trump took office, from 12.2 million in 2017 to 11.4 million this year.
The slippage has come mainly in the HealthCare.gov states, where the federal government runs signup season.