Analysts and experts predict ACA insurers will likely see a relatively profitable 2018, in contrast to previous expectations, according to The Hill.
Here are five things to know.
1. Lawmakers on both sides of the aisle predicted a grim 2018 financial picture for ACA insurers. Democrats pointed to the current administration's decision to end cost-sharing reduction payments and drastically cut the ACA's advertising budget for open enrollment, while Republicans predicted the ACA would collapse due to what they deem as a failing health law, according to The Hill.
2. However, analysts and experts gave a promising outlook for the year, partially due to higher-than-expected enrollment, according to The Hill. Roughly 8.8 million people enrolled in coverage during the shortened 2018 open ACA enrollment period, slightly lower than 2017 open enrollment.
"I think the fact that enrollment is better than expected is good for insurers that really concentrate on the subsidized population," said Katherine Hempstead, PhD, senior advisor with the Robert Wood Johnson Foundation, according to the publication.
"I would think those insurers are feeling good. … It's good for all the carriers that stayed in the market, but especially good for carriers that focus on subsidized people in the market," she said.
3. The Hill notes various insurers have also raised premiums in light of changes at the federal level.
4. According to the publication, Goldman Sachs, S&P Global Ratings and A.M. Best also predict a promising 2018 profit outlook for ACA insurers.
5. The publication reported Centene, CareSource and Blue Cross Blue Shield "are most likely to see gains." All three payers expanded their ACA reach for 2018.
Read the full report here.
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