The government shutdown is still underway, and a key point of this shutdown is the expiration of enhanced Affordable Care Act premium tax credits at the end of the year.
These were introduced in 2021 and reduced monthly premiums for those buying coverage on the exchanges. Democratic lawmakers are calling for an extension of the tax credits, while Republicans have been more reluctant. Is My dear that if the tax credits expire, ACA Marketplace premiums will double on average next year.
But it’s not just those who receive coverage on the marketplaces who will be affected by the expiration of enhanced premium tax credits, according to Dr. Amy Flaster, chief medical officer at Cigna Healthcare.
“This has implications in terms of overall access to health care for members, and we also believe it will have financial implications for the entire population, including employer-sponsored insurance and commercial populations, in terms of premiums that need to increase to help support what we believe will be the effect of the end of interchange credits,” he said.
Flaster made these comments during an interview at the recent HLTH conference in Las Vegas. Cigna has a relatively small ACA business, but a large commercial business, which is why the broader impact of these tax credits is of particular concern to Flaster.
“It’s something that concerns me personally and I want to make sure that as many people as possible have access to affordable healthcare, both exchange members and employers who are very conscious of their premiums and [are] dealing with the same affordability challenges,” he continued.
If the tax credits expire, more Americans will be left without coverage and provider systems will likely have to provide more unreimbursed care. This will have a “spillover effect” on the rest of the healthcare system, Flaster added.
“It will mean that provider systems that may already be feeling financial pressure may feel even more pressure,” he said. “There may be patients with greater access issues and there may be an increase in premiums for commercial members, because commercial plans may be helping to offset some of the other elements of unreimbursed care.”
Business Group on Health CEO Ellen Kelsay made similar comments to MedCity News in April about cuts to Medicaid. These cuts may cause hospitals and providers to charge more to commercial plans to offset losses they incur due to government-funded programs.
“I’ve talked to some health plan executives who will say very blunt things, like, ‘Well, if they cut us here, that means we’re going to have to turn around and charge the commercial market more.’ Like it’s just an assumption that the commercial market is going to continue to pay more and they can’t,” Kelsay previously told MedCity News.
Photo: zimmytws, Getty Images
