Cost-Sharing Subsidies Won’t Ease Insurers’ Uncertainty

The federal government currently pays $7 billion each year to insurers for cost-sharing subsidies and 58% of people who signed up for health insurance through the Affordable Care Act (ACA) this year qualify for these subsidies, according to the New York Times.

The HHS will continue to pay cost-sharing subsidies to health insurance companies but, the agency stated that the payments are “not an indication of what will happen in the future. No decisions have been made about how the administration will proceed.”

Health insurers and the healthcare industry as a whole have grown concerned about the individual market’s stability at least in part because of the ongoing subsidy lawsuit, the presidential administration saying the ACA will eventually “explode” so it must be repealed, as well as the unpredictability about what the next year will bring for the market.

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