Expect a Spike in Health Care Premiums
Tariffs are just one element in a “perfect storm” that will drive health care costs higher this year.
Good Morning!
Here are today’s highlights:
Can you guess why our second biggest trade deficit is now with Ireland?
Lou Mosca talks about what it takes to build trust with customers and employees.
For business owners, there are significant differences between the Senate and House tax bills.
There’s still time to join Jaci Russo’s FREE webinar on social media marketing today at 12 ET.
HEALTH INSURANCE
A tariff-driven spike in health care premiums is already baked in: “Health insurers are starting to notify states that tariffs will drive up the premiums they plan to charge individual and small group market enrollees next year. The Trump administration's trade policy is adding another layer of uncertainty for health costs as Congress considers Medicaid cuts and is expected to sunset enhanced subsidies for Affordable Care Act coverage. ‘There are sort of a perfect storm of factors that are driving prices up,’ said Sabrina Corlette, research professor at Georgetown's Center on Health Insurance Reforms.”
“Health insurers calculate monthly premiums in advance of each year based on the expected price of goods and services and projected demand for them. Tariffs announced by President Trump are expected to drive up the cost of prescription drugs, medical devices, and other medical products and services. Some of that difference ultimately would be passed down to enrollees.”
“A handful of health insurers administering individual and small group plans have already explicitly told state regulators that tariffs are forcing plans to raise enrollee premiums more than they otherwise would next year, KFF policy analyst Matt McGough wrote in an analysis published Monday. Independent Health Benefits Corporation told New York regulators in a filing last month that it plans to raise premiums for its individual market enrollees 38.4 percent next year.”
“While some states have earlier deadlines, insurers have to submit their 2026 ACA marketplace plan rates to the federal regulators by July 16, and proposed rates will be posted by August 1. That's when we'll get a better picture of how seriously tariffs are concerning health insurers.” READ MORE
