The insurance industry is calling on the federal government to step in and fill the gap left by a state insurance exchange, saying that insurance companies must not take the hit of the new federal law’s steep premium increases and coverage reductions unless the federal law is repealed.
The American Automobile Association and other trade groups are calling for the federal healthcare law’s repeal and replacement with a single-payer system, arguing that it will create a much better system of health care.
But the American Health Care Act, the law signed by President Donald Trump and enacted by the Republican-controlled Congress, imposes a host of steep new premiums, cuts to coverage, and cuts in subsidies for insurance.
And many insurers say they are scrambling to get ready for the new tax laws, which are expected to be passed by Congress this month and take effect in January.
In a statement Tuesday, the National Association of Insurance Commissioners said that it’s “deeply concerned” about the new law’s potential impact on state insurance markets.
The NACO is a trade group that represents the industry and represents more than 1,000 insurers, insurers’ companies and regional groups.
The association is calling for Congress to act on the ACA’s repeal in order to protect consumers and help stabilize insurance markets and the economy.
The group has called for a transition period of up to two years for insurance companies to adapt to the new laws and also said that the Trump administration should immediately work with Congress to repeal the ACA.
The law has led to huge spikes in premium costs for consumers and insurers.
The average price of a single policy in the individual market, which covers about one-third of the U.S. population, jumped more than 8% this year.
And the average increase in the cost of a policy has been nearly 40% since its introduction in October.
The insurance marketplaces in some states have been hit especially hard, with some states having to cut their coverage and some having to slash subsidies to consumers.