‘This is a disaster’: New York City braces for disaster coverage amid ObamaCare fallout
NEW YORK — New York City is bracing for coverage losses of up to $4 billion under President Donald Trump’s signature healthcare law after it became clear the state would not be able to pay for the law’s subsidies, a top insurer said Thursday.
The announcement by Progressive Insurance Corp., which is part of the nation’s largest insurance conglomerate, comes as some states, including New York, have seen insurers drop their coverage in anticipation of being able to sign up for the subsidies.
The New York Insurance Department has said the state will be able meet its requirements under the ACA.
A statement from the state’s Department of Insurance said that in addition to the anticipated loss of subsidies, New York’s insurance market will experience significant disruption due to the expected failure to meet the state-mandated coverage requirements under ObamaCare.
The statement did not give any estimate of the total losses and it was not immediately clear whether the state and federal governments were prepared to cover all of the losses.
New York has not set a date for the state to sign on for the government’s subsidy payments, a spokesman for Governor Andrew Cuomo told reporters.
Cuomo, who is also running for re-election, has said he does not want to see New York hit by a repeat of the failed healthcare system.
The state has already spent about $1 billion on its insurance market in 2017.
New Jersey has been forced to stop selling health insurance policies to individuals and businesses.
In a statement to Reuters, New Jersey Governor Chris Christie, who has said his state is “the only one of the four that is not going to have a financial hit,” said he was “surprised” by the announcement.
Christie also said he believes the state could still sign on to the subsidies if it decides to stay on the health care exchange.
“I am hoping we will be in a position to stay in the exchanges,” he said.
“I think it’s an option that we will have to consider if we decide to stay there.”
New York, which was the only state to launch its health insurance exchange on Nov. 1, is one of several states expected to lose federal subsidies to offset their cost of health care under the new healthcare law.
The subsidies will kick in Jan. 1 if states are able to meet their enrollment requirements, though some states are also still trying to sign new enrollees.