Oct 30, 2017

ACA enrollees will see fewer choices next year

Competition has dropped sharply since the first ACA enrollment season. Photo: Alex Brandon / AP

Every year before open enrollment for the Affordable Care Act begins, the Department of Health and Human Services puts out a report that details the available options and costs in the states using HealthCare.gov.

That report will come out later this morning, but I got a sneak peek. Here's where things stand for the upcoming enrollment period.

  • Competition is down no matter you slice it: Just 45% of enrollees live in areas with three or more competing insurers, down from 75% in the first open-enrollment window.
  • Roughly 30% of people who get coverage through the ACA will only have one insurance company to choose from next year, and 26% will only have two.
  • The average enrollee has a total of 25 specific plans to choose from — down from 30 last year and 51 during the first enrollment period.

Premiums are up — but so are subsidies.

  • HHS' data confirm that premiums will, in fact, be considerably higher for 2018 coverage. For the "benchmark" plans available to a 27-year-old consumer — plans that falls roughly in the middle of the road in terms of both coverage and costs — premiums are up, on average, by 37%.
  • Those increases are especially high because benchmark plans have borne the brunt of the drama surrounding the ACA's cost-sharing subsidies. Premiums for the cheapest plan available to that same 27-year-old are up a more modest (but still not small) 17%.
  • The ACA's premium subsidies, which are tied to the cost of those "benchmark" plans, will also much more generous next year. The average subsidy, across all enrollees, will be 45% higher than it was this year.
  • That hypothetical 27-year-old, making $25,000 per year, would see the value of her subsidies rise by 73%.
  • That means subsidized consumers could end up paying substantially less next year than they have in the past, and in many cases will be able to get more generous coverage for the same price. Unsubsidized consumers will pay substantially more every month.

Be smart: President Trump's decisions on cost-sharing subsidies have contributed to the law's rising premiums and the resulting rise in subsidies. But he's not responsible for all of this. Competition, for example, took a big hit last year — when President Obama was still in charge.

Go deeper

World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

Countries where novel coronavirus cases are falling may be hit with a "second peak" if they relax restrictions too soon, World Health Organization emergencies chief Mike Ryan warned during a briefing Monday. "We're still very much in a phase where the disease is actually on the way up," he added.

By the numbers: Almost 5.5 million people have tested positive for the virus as of Monday, and more than 2.2 million have recovered. The U.S. has reported the most cases in the world (over 1.6 million from 14.6 million tests). The U.K. is reporting over 36,900 deaths from the coronavirus — the most fatalities outside the U.S.

Coronavirus dashboard

Illustration: Aïda Amer/Axios

  1. Global: Total confirmed cases as of 3 a.m. ET: 5,498,849 — Total deaths: 346,306 — Total recoveries — 2,233,180Map.
  2. U.S.: Total confirmed cases as of 3 a.m. ET: 1,662,768 — Total deaths: 98,223 — Total recoveries: 379,157 — Total tested: 14,604,942Map.
  3. World: Italy reports lowest number of new cases since February — Ireland reports no new coronavirus deaths on Monday for the first time since March 21 — WHO suspends trial of hydroxychloroquine over safety concerns.
  4. 2020: Trump threatens to move Republican convention from North Carolina — Joe Biden makes first public appearance in two months.
  5. Public health: Officials are urging Americans to wear masks over Memorial Day.
  6. Economy: New York stock exchange to reopen its floor on Tuesday — White House economic adviser Kevin Hassett says it's possible the unemployment rate could still be in double digits by November's election — Charities refocus their efforts to fill gaps left by government.
  7. What should I do? Hydroxychloroquine questions answeredTraveling, asthma, dishes, disinfectants and being contagiousMasks, lending books and self-isolatingExercise, laundry, what counts as soap — Pets, moving and personal healthAnswers about the virus from Axios expertsWhat to know about social distancingHow to minimize your risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it, the right mask to wear.

Subscribe to Mike Allen's Axios AM to follow our coronavirus coverage each morning from your inbox.

Updated 2 hours ago - Politics & Policy

LATAM Airlines files for U.S. chapter 11 bankruptcy

A LATAM air attendant aboard one of the company's planes in March. Photo: Kike Calvo/Universal Images Group via Getty Images

LATAM Airlines Group SA said in a statement early Tuesday the firm and its affiliates in in the United States, Chile, Peru, Colombia and Ecuador have filed for Chapter 11 bankruptcy protection in the U.S.

Why it matters: Latam is Latin America's largest airline and its shareholders include Delta Air Lines. CEO Roberto Alvo noted in the statement the coronavirus pandemic has had a huge impact on the airline industry.