Anthem Inc. is likely to pull back from Obamacare’s individualinsurance markets in a big way for next year, according to a reportfrom analysts who said they met with the company, a move that couldlimit coverage options for consumers at a politically crucial timefor the law.

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Related: Anthem, in DC Circuit, fights to save $54B Cignamerger

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Anthem “is leaning toward exiting a high percentage of the 144rating regions in which it currently participates,” Jefferiesanalysts David Windley and David Styblo said Thursday in a researchnote.

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An exit by Anthem might be devastating to insurance marketscreated by the Affordable Care Act, which is often calledObamacare. The company, which sells coverage under the Blue Crossand Blue Shield brand in 14 states, is one of the few big insurersthat has stuck with the ACA. UnitedHealth Group Inc. and Aetna Inc.have already exited most states, and Humana Inc. is planning tostop offering individual ACA plans entirely for 2018.

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If Anthem quits, consumers in parts of Colorado, Kentucky,Missouri and Ohio would be at risk of having no Obamacare insurersfor next year, according to an analysis from Axios, a news website.Humana’s exit, similarly, will leave parts of Tennessee with no ACAinsurance options, though state officials have said they’re workingto attract other insurers.

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Anthem is in dialogue with the administration “to emphasize theimportance of regulatory and statutory changes in order to ensuresustainability and affordability of the individual market forconsumers,” according to an emailed statement. The companycontinues to “actively pursue policy changes that will help withmarket stabilization and achieve the common goal of making qualityhealth care more affordable and accessible for all.”

Ammunition for Trump

The pullout would also give more ammunition to President DonaldTrump’s administration and Republican lawmakers, who havehedged on their plans for supporting President Barack Obama’shealth program after a failed attempt to repeal and replace it.Trump has said the health law is “ exploding” and mused aboutletting it collapse.

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Related: Trump courts governors, health insurerCEOs

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“It’s imploding and soon will explode and it’s not going to bepretty,” Trump said on March 24, after Republican lawmakers pulledtheir proposal to repeal and replace Obamacare due to lack of partysupport.

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Related: Cigna faces off with Anthem

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Some Republican lawmakers in the House of Representatives havediscussed quickly reviving their Obamacare repeal efforts. Othershave expressed a desire to move on to overhauling the tax code andfunding infrastructure projects, saying the party hasn’t yetreached a consensus on health care.

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At the same time, Democrats are likely to blame any weaknessesin the health law’s markets on the Trump administration. Theadministration faces a number of crucial decisions over the comingmonths that could help stabilize the health law or undermineit.

Looking for stability

Anthem’s management said that in order to participate in theACA, the company needs to see changes beyond a slate of fixesproposed by the Trump administration in February, according to theJefferies report. And they said Anthem’s management expectsapproval of “substantial” premium increases for 2018.

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As of Dec. 31, Anthem had 1.3 million customers in individualplans that comply with the ACA’s requirements, including 839,000from the health law’s markets, called exchanges. Plans that complywith the ACA can also be purchased outside the exchanges, such asdirectly from an insurance company, but those plans aren’t eligiblefor the health law’s subsidies.

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Anthem Chief Executive Officer Joe Swedish had earlier said thecompany will decide where to offer Obamacare plans by the middle ofthe year. Anthem has to decide “whether or not we surgicallyextract ourselves from certain rating regions, or quite franklyeven on a larger scale, depending on the stability of themarketplace,” he said in February.

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“If we can’t see stability going into 2018 with respect toeither pricing, product, or the overall rules of engagement, thenwe will begin making some very conscious decisions with respect toextracting ourselves,” Swedish said on a call with Wall Streetanalysts to discuss fourth-quarter results. Ratings regions aregeographic areas where insurers sell health plans.

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