Which insurance agencies are at risk for losses?
The federal government has estimated that as many as 50 percent of all health insurance companies are vulnerable to potential financial losses if they cannot keep pace with rising medical costs.
The Centers for Medicare and Medicaid Services, which oversees the health insurance marketplaces, issued a warning Friday to insurers and other health insurers that they are in a “state of extraordinary uncertainty” about how to cope with rising costs.
It said insurers will face “substantial and potentially life-altering uncertainty” if they do not act now, adding that the potential for the cost of health care to skyrocket is “unprecedented.”
It said it is “very concerned” that insurers are not paying for care and “very worried” that they may not be able to cover the costs of medical procedures and other costs.
“We do not have any idea what the impact will be on consumers.
And that is a big concern,” said Robert Shackelford, the acting administrator of CMS.
In response, insurance companies and advocates are preparing for a possible spike in premiums, as the federal government attempts to stabilize the health care marketplaces and help Americans afford their insurance.
And some of the companies have already started to take steps to mitigate the impact of rising costs, including lowering deductibles, caps on co-pays and limiting out-of-pocket costs.
On Thursday, American Express said it would cut out the deductible in some of its plans and that it would offer a discount for people who choose to purchase more coverage.
But the company did not provide an estimate on how much its plans would cost.
Insurers and experts say the costs are rising at a rate that is unprecedented and that insurers will be forced to pay higher premiums in the years ahead.
The Congressional Budget Office estimated in August that premiums would increase about 10 percent for most consumers over the next decade.
That is expected to be more than double the rate of inflation over the same period.
The Trump administration has proposed cutting spending for Medicaid by $800 billion over the coming decade, while also increasing taxes on the wealthy.
But the Republican-controlled Congress has rejected the idea, saying the cuts are needed to stabilize a health care system that has grown too large.CMS said Friday that it will issue a new report on the state of the health marketplaces next month.
It is expected that the new report will be released as soon as next week.
The agency has estimated a potential spike in health insurance costs would add more than $2,000 to the cost to a consumer.
It is expected the total amount of costs for those who lose coverage to medical bills would increase from $10,500 to more than more than 20 times that.
In addition to the costs, insurers will need to assess the health of their customers and how to manage their finances to stay in business.
In 2018, insurers saw more than 2 million premium claims.
The administration has said the costs to insurers are expected to grow each year and that the average annual premium increase will increase from 6 percent to 8 percent from 2020 to 2024.
The number of people covered by plans increased by about 5.4 million to 28.6 million from 2020 through 2024, according to the Congressional Budget office.