Alliant Health has a big reason to be happy: It’s one of the largest providers of life insurance in the country.
That’s despite having to pay for it all in the form of the Affordable Care Act.
The news is a major victory for the industry, which has been battling to keep insurance affordable for its clients and for the millions of Americans who have been left out of the Medicaid expansion.
But it also highlights the limits of the ACA’s insurance markets.
And all that, in a nutshell, is why the insurance industry has been arguing so vehemently for an end to the ACA subsidies, which have already helped thousands of insurers, some of which have reported a huge drop in premium costs.
And Alliant isn’t the only insurer to argue that the ACA didn’t work, saying in a court filing Tuesday that it had to cover nearly 40% of its Obamacare enrollees, up from 22% just last year.
The insurer said it has spent more than $1 billion on ACA insurance, which covers about 4 million people, with an average deductible of $2,000.
“The vast majority of our ACA customers have been able to enroll in new policies that meet their needs without a major premium increase,” the company wrote.
“And, as we continue to monitor the health outcomes of the millions who have participated in the exchange, we are confident that there will be no change to the benefits of our policies.”
Alliant said the ACA will be fully paid for through a combination of tax credits and reinsurance, which it says are available to other insurers.
That means it’s no longer going to have to pay out subsidies to insurance companies that had been in the ACA market.
Alliant is the only company that has been hit by the ACA-created reinsurance program.
The Affordable Care Exchange enrollment period for 2018 is now over, but it’s already been one of Obamacare’s most tumultuous years.
The ACA had been expected to be the catalyst for the repeal of some of the law’s provisions, including Medicaid expansion, but many Republicans in Congress were eager to repeal it anyway.
They also didn’t want to give insurers a chance to adjust to the new health care system.
And in the face of that uncertainty, the ACA continued to expand insurance options, including subsidies that help consumers pay for premiums and deductibles.
It also expanded Medicaid coverage, and those subsidies helped more people sign up.
But those programs didn’t go away, and the exchanges continue to operate.
That has made it more difficult for insurers to compete, and it’s left insurers scrambling to figure out how to compete with each other, and even each other’s employees.
The exchanges are facing the same challenges, with insurers now competing against each other to enroll customers, and some of those enrollments are not good.
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