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"ACA Insurers, States Rush To React To Trump’s Latest Move"

  • Bloomberg News
  • New York, NY
  • (October 15, 2017)

States regulators and health insurers are rushing to react to the latest move by the Trump administration to dismantle parts of the Affordable Care Act, less than three weeks before their citizens and customers start signing up for coverage. President Donald Trump’s administration said this week it wouldn’t pay subsidies to insurers that are used to help lower-income people with medical costs. In response, some regulators say they’ll need to reconsider the rates health insurers can charge. Hospitals will face increased costs as well, said Kenneth Davis, MD, president and CEO of the Mount Sinai Health System. Patients without insurance, or who leave Obamacare to buy less comprehensive coverage, still show up and need care. Those patients can face large out-of-pocket costs. “Here’s what happens: When people decide that they can’t afford their coverage, they just don’t pay,” Dr. Davis added. “Our CFO likes to say co-pays are no-pays. We’re not-for-profits; we don’t go after people. We wind up dropping those charges ultimately, and that’s a tremendous loss for us.” 

- Kenneth L. Davis, MD, President, CEO, Mount Sinai Health System

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