AAA says repealing the mandate could raise premiums, cause insurers to become insolvent or leave the market altogether. The American Academy of Actuaries, whose tagline is Objective. Independent. Effective. wrote a letter to Mitch McConnell, Senate majority leader and Chuck Schumer, Senate minority leader, to share the potential adverse consequences of eliminating the ACA’s individual mandate.
The AAA has 19,000 members and is committed serve the public. The Hertel Report member and Advisor Tom Snook is a member.
“I agree with the position taken by the American Academy of Actuaries that the elimination of the mandate could likely lead to further premium increases. However, lower income individuals – which constitute a great majority of individuals buying health insurance through the exchanges — receive a premium subsidy. For those for whom the subsidy covers a substantial portion of the cost, there remains an incentive to maintain coverage.”
Thomas D. Snook, FSA, MAAA Principal and Consulting Actuary
Read the whole November 21, 2017 AAA Letter to McConnell and Schumer