Sticker shock for many, insurer exits if Obamacare rule killed

Bill Clark | CQ Roll Call
Members of the New Jersey Citizen Action group protest outside the Capitol as the Senate holds a second day of voting on health care legislation on Tuesday, July 25, 2017.

A group of experts who set insurance prices warned Senate leaders Tuesday that repealing Obamacare’s key coverage rule will lead to price hikes, and could weaken insurers’ solvency and lead some to exit the market.

At the same time, a leading health policy research group said that younger and wealthier Americans would benefit the most from tax reductions that are included in a bill that would repeal the mandate.

That’s because the higher Obamacare premiums that would follow repeal would be more than offset for those two groups of people by their reduced tax burdens.

But older adults with moderate incomes will be less apt to have their higher health plan prices offset by the tax cuts, according to the Commonwealth Fund analysis.

The warning to Senate leaders came in a letter from the American Academy of Actuaries a week after the Senate Finance Committee recommended a tax bill that would, among things, repeal the Obamacare mandate. The group’s members help set the prices for Obamacare insurance plans.

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