English Imp Article for IBPS RRB PO 2017-18
In recent weeks, some health insurance companies have announced that they will not offer individual market coverage in 2018, while others have requested to grow bigger premiums. In response to this news, President Donald Trump introduced the Affordable Care Act (ACA ), The individual market structure created by the “dead” is called. Likewise, House Speaker Paul Ryan (R-WI) has claimed that the market “the death spiral” reflects the fundamental flaws in the design of ACA incorrect diagnosis of the status of these claims. The ACA’s individual market structure – though not perfect – is sound and has been successful in expanding the coverage. As the year 2017 began, the market was ready to leave behind the growing pain of the past few years. Then the President and Congress created unnecessary unrest.
With ACA reforms being expanded in different markets, the background for the current debate is made. In these reforms, insurance companies have to stop refusing to pay more premium on the basis of health status; To make subsidy insurance coverage more economical; And one requirement is that people take health insurance or pay penalties. These provisions increased dramatically in 2013 to about 17 million in different market nominations from 11 lakh in 2013. That expansion not only gave the insurers a greater chance to sell new customers, but also offered a challenge: insurance companies had previously known a lot about the health care needs of uninsured people
It has been learned that the insurance companies initially had set a very low premium to cover the costs generated by the new enrolies, and there were several major losses from 2014 to 2016. Some insurers reacted on exit from the market, leaving around five people in the market where only one company offered coverage. Some of these clearances reflect a natural method of adjusting to a new market that poorly release sellers, while successful sellers live and expand over time. In some cases, the “panic” or other factors completely after the withdrawal of 3 years of loss.
The remaining insurance companies increased premium significantly for 2017 – an average of 22% for the “benchmark” market plan. Although this was immersing the adjustment, but the sharp enrollment slows down that some observers were not scared, which was not real. The initial indications are that the insurers will break average in 2017 or make marginal profits. With the increase in 2017, it shows that the stability and competition in the prices will start recovering.
The administration and the Congress, however, reduced that progress on their first day in the office, Trump signed an executive order to give instructions to their administration, which is possible to provide exemption from the ACA provisions, including the individual Maneda. The House of Representatives then passed the American Health Care Act, which will cancel the personal mandate retrospective for the year 2016 plan. The Congressional Budget Office estimates that personal market premium will increase 20% to 2018.3 as a result of healthy enrollees from the individual market.
The President has also doubted whether the federal government will continue to reimburse insurance companies for cost-sharing subsidies that they are legally required to provide the most for the market to the Enrollees. In 2014, the House Republican filed a lawsuit alleging that the ACA was not formally appropriately funded for those reimbursements. A federal district court judge decided in favor of the plaintiff, but made a pending appeal on his decision. Now the administration has suggested that it could leave the appeal and stop the reimbursement. The Kaiser Family Foundation estimates that insurance companies will need to raise premium for the “Silver” plan to end the payment, which is an average of 19%, on the HealthCare.gov enrollment platform