S&P said cost sharing reductions, short-term assistance funds and stabilization funds for the states provided under the BCRA would have a positive effect on the individual insurance market from 2018 to 2021.
However, S&P said the proposed bill fails to create a long-term sustainable market, as there would be a “sharp drop in access” to health insurance after 2021.
For the individual market, the decline in access would be caused by a reduction in federal funding for advanced premium tax credits through the use of a “lower actuarial value for the benchmark plan” and elimination of the ACA’s individual mandate, according to S&P.
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