Four things to know: Payers’ biggest ACA repeal concerns
If the ACA is repealed, government subsidies that assist consumers in paying for insurance premiums in the individual market may also be eliminated. “If subsidies are no longer given, consumers are likely to drop coverage given the extra cost, resulting in membership declines that could adversely affect managed care companies,” says David M. Kaufman, partner in the Healthcare Practice Group at Freeborn & Peters LLP in Chicago and the former general counsel of Blue Cross and Blue Shield of Illinois. The shortage of premiums received by issuers would likely result in losses for issuers and premium increases for consumers. A court case regarding this, House v. Burwell, has been stayed by the U.S. Court of Appeals to give the incoming administration and the House an opportunity to reach agreement on how to settle the case.