President Trump to scrap ACA subsidies. (user search)
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  President Trump to scrap ACA subsidies. (search mode)
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Author Topic: President Trump to scrap ACA subsidies.  (Read 2308 times)
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Harry
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Posts: 35,711
Ukraine


« on: October 12, 2017, 09:53:08 PM »

Supposedly this may not be all that bad.

IF state insurance commissioners allow it, the insurers will load the full cost of the CSRs entirely onto on-Exchange Silver plans only, which will make the Silver plans cost more than Gold generally. (Even though that's kinda nonsensical.)

If Silver is suddenly a lot more expensive, the "second cheapest Silver plan" is more expensive, and that's what the premium subsidies (APTCs) are based on. It could mean that in 2018, Gold plans are available on Exchange to everyone for less than the price you'd expect to pay for Silver, and Bronze plans will be practically (or even literally) free.

Again, this assumes that the state insurance commissioners allow it, and that Trump/HHS doesn't contrive some way to disallow it. Most likely the Feds would end up paying out more money in extra APTCs than they would have paid in CSRs, and overall health insurance becomes cheaper to the consumer. But remember that's only because of a weird technicality and a nonsensical pricing scheme.

I highly doubt Trump has any idea about this, but it will be funny if the deficit increases because of this.
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7,052,770
Harry
Atlas Superstar
*****
Posts: 35,711
Ukraine


« Reply #1 on: October 13, 2017, 07:45:19 AM »

Any word on whether this takes effect immediately or in 2018?

If it's immediate, insurers will end up having big losses in 2017. Few if any rebate checks for anyone.

If it's not until 2018, insurers can at least build it into pricing and just maybe in a pro-consumer scheme that backfires on the deficit hawks
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