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A.M. Best Predicts Stable Year for ACA

A.M. Best predicts that Affordable Care Act insurance markets will be relatively stable through 2018, noting that insurers have adapted to the uncertainty surrounding the Trump administration’s handling of the law...
January 9, 2018

A.M. Best predicts that Affordable Care Act (ACA) insurance markets will be relatively stable through 2018, noting that insurers have adapted to the uncertainty surrounding the Trump administration’s handling of the law. Insurers benefited from high rate increases, limited competition, and narrow provider networks in 2016 and 2017, the analysts said, as well as a stabilizing exchange population ratio between sick and healthy customers.

A.M. Best also noted that ACA backers were concerned that President Donald Trump’s decision to cut off key insurer payments would destabilize the markets for 2018, but that ended up not being the case. Many states allowed insurers to adjust their rates to make up for the cancellation of the payments. Recently-passed tax legislation repeals the ACA's individual mandate, but that change will not take effect until 2019. Some experts have questioned whether the move will have a significant impact on insurance markets. In addition, the analysts believe Congress will focus on other issues in 2018 rather than on repealing the remaining provisions of the ACA.

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