The Corner

Insurance Trade Association Blasts Obama Fix

America’s Health Insurance Plans, the national trade association that represents the insurance industry, blasted President Obama’s administrative fix for the Affordable Care Act today, warning the change “could destabilize the market and result in higher premiums for consumers.” The full statement, from Karen Ignagni, the group’s president and CEO:

Making sure consumers have secure, affordable coverage is health plans’ top priority.  The only reason consumers are getting notices about their current coverage changing is because the ACA requires all policies to cover a broad range of benefits that go beyond what many people choose to purchase today.

 

Changing the rules after health plans have already met the requirements of the law could destabilize the market and result in higher premiums for consumers.  Premiums have already been set for next year based on an assumption of when consumers will be transitioning to the new marketplace.  If now fewer younger and healthier people choose to purchase coverage in the exchange, premiums will increase and there will be fewer choices for consumers.  Additional steps must be taken to stabilize the marketplace and mitigate the adverse impact on consumers.

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