The company's S-1 lays the groundwork for what is widely expected to be one of the largest initial public offerings of the year, second only to Uber's IPO in May. It's also...Technologyread more
Fraud investigator Harry Markopolos' accusations extended beyond GE's management to actuaries, auditors and analysts who he claims overlooked billions in liabilities.Marketsread more
Trump's tweet comes a day after Apple put out a press release describing the money it spends on U.S.-based suppliers and vendors.Technologyread more
CNBC combed through Wall Street research to see which stocks are still a buy after their earnings reports.Marketsread more
President Donald Trump held a call on Wednesday with the CEOs of three major U.S. banks, according to people with knowledge of the situation.Marketsread more
Despite aggressive strides, Waymo needs one thing before their self-driving cars become a seriously useful transportation system: people. We talked to the ones closest to it.Technologyread more
Scientists say the smoke plumes, filled with megatons of tiny, harmful particles, could travel to other areas of the world and cause serious respiratory problems for people.Weather & Natural Disastersread more
Some Weight Watchers loyalists applaud Kurbo by WW. But nutritionists worry Kurbo promotes an unhealthy relationship with food during an especially impressionable time.Health and Scienceread more
Benefits from what President Trump called "the biggest reform of all time" to the tax code have dwindled to a faint breeze just 20 months after its enactment, writes John...Politicsread more
Epstein, 66, was found in his cell in Manhattan federal lockup Saturday morning and transferred to a nearby hospital, where he was subsequently pronounced dead.Politicsread more
Air travelers faced delays at U.S. airports on Friday afternoon after a computer issue snarled processing of international arrivals.Airlinesread more
What insurers don't know will cost Obamacare customers, big-time, in 2018.
A large fraction of the price increases sought for Obamacare health plans will be due to uncertainty among insurers about whether the government will continue paying them billions of dollars in key subsidies, and whether the government will enforce a rule requiring most people to have health insurance, a new analysis says.
"Our modeling shows that this uncertainty, if it remains, could lead payers to submit rate increases between 28 and 40 percent" above the premiums currently charged customers, the analysis by the consulting firm Oliver Wyman said.
"And more than two-thirds of those increases will be related to uncertainty around CSR [cost-sharing reimbursement] payments and individual mandate," the firm said.
The analysis comes on the heels of a number of Obamacare insurers asking for high price hikes, or saying they will leave the individual health plan marketplaces, in part because of uncertainty over CSRs.
CSRs are funds paid by the federal government that reimburse insurers for discounts in deductibles, co-payments and other out-of-pocket health costs they give to low-income Obamacare customers.
Additionally, Oliver Wyman said, a survey conducted by the firm revealed that 43 percent of insurers plan to increase their Obamacare premiums by 20 percent or more. And 36 percent of insurers plan to hike their rates by between 10 and 20 percent.
Insurers are worried that the Trump administration or congressional Republicans will stop paying them CSRs — which are worth $7 billion this year — because of either a pending federal court case, or because both the administration and the GOP oppose Obamacare.
The insurers are obliged by current law to offer the subsidies to qualified customers, and would have to continue offering them even if they are not reimbursed by the government. President Donald Trump has mused about ending the payments, whose value next year is estimated to be $10 billion.
Oliver Wyman said that premiums next year would be between 11 percent and 20 percent higher solely because of uncertainty among insurers about whether they will continue receiving CSRs in 2018.
"If payers do not gain clarity on funding of CSR payments soon, they will have to build that cost into their premiums," Oliver Wyman said.
While 94 percent of the insurers surveyed by Oliver Wyman said they plan on remaining on Obamacare exchanges next year, 42 percent of respondents said they would likely exit those marketplaces if the CSRs are halted.
The other 58 percent of insurers said they would refile their proposed premiums for next year if the CSRs were cut off.
Insurers also fret that the Trump administration will not enforce the individual mandate, which imposes a tax penalty on people who failed to have some form of health coverage.
Oliver Wyman estimates that uncertainty among insurers about possible non-enforcement of the mandate would by itself increase premiums by 9 percent, although that uncertainty alone could prompt insures to add anywhere from zero to more than 20 percent on top of their premium requests.
The company said the cost of health care will add just 5 to 8 percent above current premiums, and that the federal health insurance tax will add a mere 3 percent.