Anthem Threatens Higher ACA Rates If Funds for Poor Stop

  • Insurer could increase rates by 20 percent without subsidies
  • Company considers following peers in exiting Obamacare markets

An Anthem Health Insurance facility in Indianapolis, Indiana. on Feb. 5, 2015.

Photographer: Aaron P. Bernstein/Getty Images
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Anthem Inc. threatened to raise rates for its Obamacare plans next year if the U.S. government stops funding subsidies for lower-income customers, putting pressure on the administration and Republicans to support a key piece of the health law.

Chief Executive Officer Joseph Swedish said on a conference call Wednesday that the insurer could raise its rates by 20 percent if the subsidies aren’t paid to insurers. The subsidies are currently the subject of a political debate in Washington and it’s unclear whether President Donald Trump’s administration will continue to fund them.