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What Does ACA Repeal Collapse Mean for Agents?

All of the effects of the failure to repeal or replace the Affordable Care Act (ACA) cannot be determined now, because much of what happens next is up in the air. At the risk of taking one tweet out of context, after the vote President Trump tweeted...
August 1, 2017

All of the effects of the failure to repeal or replace the Affordable Care Act (ACA) cannot be determined now, because much of what happens next is up in the air. At the risk of taking one tweet out of context, after the vote President Trump tweeted, “As I said from the beginning, let ObamaCare implode, then deal. Watch!” While Senate Majority Leader Mitch McConnell said after the vote, “It’s time to move on,” President Trump has indicated he would like to see another vote on ACA repeal shortly. While the House has adjourned for its August recess, McConnell still plans to keep the Senate in session another two weeks.

The impact of all of this on agents will depend a lot on what happens now to the health insurance market. Will Congress come together and take steps to stabilize markets? Or will repeal advocates attempt to destabilize them? Will President Trump order payments, known as cost-sharing subsidies, to insurers cut off on the exchanges when they become due each month? (The next payment is due in mid-August).

With a mid-August deadline to finalize 2018 health insurance rates looming, the NAIC said Congress must act quickly before its recess to stabilize the individual health insurance market.

READ: Insurers Await Trump Decision on Health Cost Subsidies

PIA Members’ Involvement in Health Insurance

According to the 2017 PIA Independent Agent Survey, in health insurance 78.84% of PIA members participate in private market placement while 16.2% have to engage in the ACA marketplace for their customers. With respect to health insurance, 68.1% of PIA agencies reported a loss of more than 10% of earnings in this line over the last three years, with an increase in required service.  These figures indicate that the overwhelming majority of PIA members participate in private market health insurance placement, with very limited use of the ACA, mostly as a courtesy to their clients.

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