The latest Patient Protection and Affordable Care Act delays haven’t been good news for an administration still struggling to keep its image despite the law’s rocky rollout.
The delays aren’t good news for carriers, either.
Moody’s Investor Service says PPACA’s latest delays — including allowing individuals to remain enrolled in non-PPACA-compliant policies for 2014; extending deadlines for 2014 enrollment; and changing the 2015 open enrollment period — are a “credit negative” for carriers, and warn that more changes to the law’s rollout, which they say are now expected, will further negative implications for carriers.
“The recent last-minute administrative changes made by the Obama Administration are credit negative for U.S. health insurers as they expose the sector to additional financial and operational risks,” Moody’s concluded in its latest sector comment.
First, the administration’s backtrack on the cancelled policies are problematic, said Steve Zaharuk, who wrote the report.
“This change will likely have a negative effect on the risk profile of the exchange health risk-pool, should healthy younger members take advantage of this last-minute waiver. The uncertainty created as state insurance commissioners and insurance companies decide whether or not to offer this option to their insured members has further delayed enrollment in the exchanges,” he said.
The 2014 deadline extensions will result in administrative burdens and lost revenue for carriers.