WASHINGTON (AP) – Business analysts say the leveling off in premiums next year under the Affordable Care Act means insurers have figured out how to make a profit on the politically contentious program.
Deep Banerjee of Standard & Poor’s says insurers who stuck with the ACA have gotten to know the health needs of their mostly low-income customers and learned to price their plans accordingly. An exclusive analysis by the consulting firm Avalere Health and The Associated Press finds “Obamacare” appears to be stabilizing after two years of sharp premium increases.
The analysis found a 3.6 percent average increase in proposed or approved premiums across 47 states and Washington, D.C., for next year. Eleven states will a drop. But Banerjee still sees a “cloud of uncertainty” over the ACA because of the Trump administration’s hostility.