Uncertainty over future surges of COVID-19 and the end of regulatory flexibilities are going to be major drivers for 2022 premiums on the individual and small group markets, a new actuary report finds.
The report, released Thursday (PDF) by the American Academy of Actuaries, finds insurers face major uncertainties like the end of the public health emergency and the fate of enhanced subsidies for coverage on the Affordable Care Act’s (ACA’s) insurance exchanges.
“Greater degrees of uncertainty could lead to more conservative assumptions and risk margins for some insurers,” the report said. “Alternatively, carriers might lower risk margins, seeing an opportunity to capitalize on the increased enrollment due to the [American Rescue Plan Act] subsidies.”
Author(s): Robert King
Publication Date: 2 September 2021
Publication Site: Fierce Healthcare