Anthem Withdraws from California's Individual Health Markets

Anthem has announced that they are pulling out of the individual market in 16 of the 19 health insurance regions in California, including all of Southern California. Notices were sent to policyholders informing them that if they get their coverage through Covered CA or even individual policies directly from Anthem without subsidies, their policies will not be renewed on January 1, 2018. This action will impact approximately 250,000 Californians who must switch to new insurers. The instability in the Covered CA marketplace is due to the political attacks on the ACA according to Gerald Kominski of the UCLA Health Policy Center, and other policy experts.  Click here to read LA Times article.

On the same day, Anthem announced its quarterly earnings, beating expectations by nearly 10%. Their stock price is up over 30% since January on the strength of their government business and small business plans. Click here for SF Gate article.

Republicans Focus on "Skinny" Repeal Now

Having failed to get 50 votes on either full repeal or on repeal and replace, Republicans are now focusing on "skinny repeal." Senators are not sure exactly what will be in the proposal, but it is expected to include a withdrawal of the individual mandate, tax penalty and medical devices tax. This initiative is gathering steam, with Heller and Rand both expressing support.

It would not cut Medicaid funding, but Blue Cross Blue Shield warned that premiums on the individual market would skyrocket without it. The self-employed would be among those hardest hit, especially those with chronic conditions who buy more comprehensive (and expensive) policies.

If it passes the Senate, it would then head to the House where it may be voted on as early as Saturday.

The bronze and silver policy offerings on the individual markets have been challenging for many consumers who balk at paying substantial premiums for high deductible policies. It is most frustrating for those who do not qualify for subsidies. They are paying thousands of dollars annually per family member without receiving much actual healthcare.

Click here for article from The Hill.

Senate Republicans Meet Late into the Night; No Breakthrough, but Some Optimism

President Trump is still insisting that the Senate Republican get an ACA repeal bill to him as soon as possible. McConnell is still planning to have a vote on such a bill next week. Senate Republicans are expressing optimism publicly, but are privately skeptical. The latest wrinkle is that Senator McCain has a brain tumor and there is no set date for his return to the Senate. Bipartisanship is not an option according to Republican party leadership. Meanwhile, millions of Americans are unsure what access they will have to health coverage and at what cost. The exchanges are set to go live with the 2018 policies and pricing in less than 3 months. Read the Politico article here.