Most of the health insurance executives would demur when asked about how Donald Trump’s administration is making Obamacare more expensive. But the case is different for BCBSNC CEO Brad Wilson. Yes, the chief executive of Blue Cross Blue Shield North Carolina just filed a 22.9 percent increase in Obamacare premium rates for the year 2018. Wilson had expected to have a smaller rate increase this year; he feels that after years of losing money, the North Carolina marketplace is stabilizing finally.
CSR program’s Future Endangered
The US government pays health plans to reduce out-of-pocket expenses for Affordable Care Act exchange customers through the CSR programs. But the program’s future is in danger, as not only would the American Health Care Act stop its funding, but a lawsuit brought by House Republicans also challenges its validity.
Last week the case was put on hold for another 90 days, this does ensure that the CSR payments would continue for now. But still leaves many questions unanswered for the future as they begin to file their individual market rates for the coming year. The president and federal health officials have rejected to commit to funding the subsidies after the suit is resolved.
Why Is BCBSNC CEO Asking For A Big Increase In 2018?
BCBSNC CEO, Brad Wilson is asking for a big increase in 2018 because he does not expect the Trump administration to fund a key Obamacare program, the cost-sharing subsidies. This is a $7 billion program which lowers copays and deductibles for low-income enrollees. The Trump administration has been violently unclear on whether it will continue to finance that program, which is currently being challenged in a federal lawsuit.
Wilson would have filed an 8.8 percent rate hike if he was sure if those funds would be paid. But he bumped it up to a 22.9 percent increase because he doesn’t think the Trump administration will come through.
According to BCBSNC CEO,
“The president and the administration have made several statements about CSRs that don’t give any comfort that they will be available.” He added, “The information we’ve seen coming from the administration actually creates more uncertainty rather than creating greater certainty,” he says. “The last thing I saw was the president has said he intends to make available the CSR money through May 2017. That is good news. We’re grateful for that assurance. What is not said is what about June through December. There’s a big void.”
Wilson Isn’t Alone In That Opinion
Mario Molina, is also in line with BCBSNC CEO. Molina wrote in a recent op-ed published by U.S. News & World Report, that Americans have been “duped” into believing that the ACA is failing when the reality if different, the Republicans are the ones working to destroy it. He says refusing to commit to reimbursing health plans for CSR payments, is “perhaps the most drastic way” that the Trump administration is intimidating Americans’ access to health insurance.
Date: June 1, 2017