Cigna Says End To ACA Subsidies Would Likely Increase Premiums

The Trump Administration’s decision to discontinue Affordable Care Act subsidy payments would have dramatic implications on insurers and consumers alike, according to CIGNA Corporation CI.

“Many Americans in the Individual insurance market rely on the federal government’s cost-sharing reduction payments to help make their Exchange coverage more affordable,” Cigna spokesperson Mark Slitt told Benzinga. “Recent developments regarding these cost-sharing reduction payments bring further uncertainty to the long-term sustainability of the Individual insurance market, creating likely increases in future premiums.”

The firm appealed to policy makers to collaborate on solutions ensuring financially accessible coverage to millions reliant on Individual insurance.

“In the meantime, Cigna will continue to honor the commitments that we have made to our customers who qualify for cost-sharing reduction payments,” Slitt said.

Health insurance stocks were trading lower on the news.

Aetna Inc AET and UnitedHealth Group Inc UNH had yet to report their reactions or strategies surrounding the White House's pullback, which CNBC reported Friday.

The subsidies had long appeared secure, as President Donald Trump authorized payments every month despite his enduring resistance to Obamacare. But on Friday, Trump reaffirmed commitment to “repeal and replace."

Photo credit: Emily Elconin