"The Senate rejected a pair of partisan measures addressing the impending expiration of Obamacare subsidies, setting up a Jan. 1 spike in health insurance premiums for more than 20 million Americans. With only a few days left before lawmakers leave for their Christmas break and few signs of life in stalled bipartisan negotiations, the failure Thursday of the dueling partisan plans all but guarantees the expiration of enhanced Affordable Care Act tax credits initiated during the pandemic era."
"Premium costs on average will more than double for people enrolled in Obamacare plans, forcing many of them to make hard choices on their health coverage and household finances. The outcome will have wide-ranging consequences for insurance companies, a health-care sector that accounts for one-sixth of the US economy and potentially next year's midterm elections. Nearly 4 million people are expected to lose insurance over the next decade as a result, according to the Congressional Budget Office."
"If fewer people buy health-care policies because of the higher costs, insurers will take in less revenue. And as healthy people choose to risk going without insurance coverage while sicker people stick with insurance plans, insurance becomes more expensive. Insurers including Centene Corp., Molina Healthcare Inc. and Oscar Health Inc. stand to lose the most. UnitedHealth Group Inc., Elevance Health Inc., and Cigna Group also sell exchange plans that would be hit if subsidies lapse."
The Senate rejected competing partisan plans to extend enhanced Affordable Care Act subsidies, ensuring those pandemic-era tax credits will expire Jan. 1. More than 20 million Americans face a sharp spike in premiums, with average costs more than doubling for many enrollees and forcing difficult choices about coverage and household finances. The Congressional Budget Office estimates nearly 4 million people could lose insurance over the next decade. Insurers will face revenue declines and adverse selection as healthier people drop coverage, hitting firms such as Centene, Molina and Oscar hardest and also affecting UnitedHealth, Elevance and Cigna. Hospitals may face increased uncompensated care. A Democratic three-year extension failed 51–48, short of the 60 votes needed.
Read at www.mercurynews.com
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