President Donald Trump’s administration’s most recent move on the Affordable Care Act could further increase premiums for consumers than what had already been forecast.
The administration on Thursday said in a legal filing it wouldn’t “defend the constitutionality” of some key provisions in the Affordable Care Act, according to a Fierce Healthcare report. Trump’s move supports a coalition of states’ lawsuit against the health care law earlier this year.
Although there’s no definite timeline on the legal action taken by the administration and the Republican-led states, there could be some risk-aversion strategies implemented by payers.
“For states, for insurers, for consumers who are looking at this, it’s not time to hit the panic button just yet,” Sabrina Corlette, a research professor at Georgetown University’s Center on Health Insurance Reforms, told Fierce Healthcare. “When insurers don’t know what their risks are going to be, they are going to err on the side of being conservative.”
Corlette says while premiums were already expected to rise, “this will make them rise even more.”