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"How might insurers' health fare under GOP plan?" by Adam Shell
Managing Director and health care analyst Kim Monk was quoted in Adam Shell's USA Today article, "How might insurers' health fare under GOP plan?".
Centene's fortunes could dim under the new Republican plan, says Kim Monk, managing director at Capital Alpha Partners. The reason: the GOP's new American Health Care Act will in 2020 begin scaling back sizable government subsidies that low-income Americans relied on to make coverage affordable. In the place of subsidies would be tax credits – based on age and income. Credits could range from $2,000 for people under 30 to $4,000 for those over 60, and be phased out for individuals earning more than $75,000 and $150,000 for couples that file joint tax returns. The problem is these tax credits won't cover as much of the premium cost as the ACA, when the government footed nearly the entire bill. The result will likely be less people insured under Medicaid.
"It is a big risk for Centene if they lose a big chunk of that business," says Monk.