To try to keep the costs of health insurance premiums low during the next open enrollment period, the Obama administration has altered aspects of the Affordable Care Act to provide insurers with additional funds.
According to the Los Angeles Times, the move is to provide insurers with a backup in case they lose money due to the ACA. While the news source reported the majority of health insurance companies won’t need the funds within the next few years because there are provisions within the ACA to protect them, the additional money will help insurers provide ACA-compliant health plans that are still affordable.
The Daily Mail, a news source in the U.K., reported the federal funds could end up covering a large percentage of insurers’ monetary shortfalls – between 50 and 80 percent – over three years. How it works, according to the Daily Mail, is that if insurers have claims that are more expensive than they previously anticipated, they would be able to receive money to cover half of the difference.
For public and state workers, this could help keep insurance benefits premiums low next year if they seek coverage through the exchanges.