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Surge in cheap ACA plans; state blocked from seizing Pa. insurer's reserves

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Surge in cheap ACA plans; state blocked from seizing Pa. insurer's reserves

The availability of zero premium health plans has increased significantly for 2018 due to President Donald Trump's decision to end the Affordable Care Act cost-sharing reduction payments, the Washington Examiner reported, citing Larry Levitt, senior vice president at Kaiser Family Foundation. The president's decision has resulted in higher tax credits for low-income customers, thereby driving up the number of cheap plans available for zero premiums but high deductibles, Levitt reportedly said.

U.S. District Judge Christopher Conner has blocked the Pennsylvania state government from demanding $200 million from a state-created medical malpractice insurer until a lawsuit filed by the insurer goes to trial, The Associated Press reported. The state government threatened to shut down the Pennsylvania Professional Liability Joint Underwriting Association if it didn't hand over $200 million in reserves by Dec. 1, claiming the reserves belonged to the state. Subsequently, the association sued the state government describing the demand as unconstitutional and sought to suspend the state's deadline.

Alex Azar, the pending nominee to lead the U.S. Department of Health and Human Services, is expected to be asked Nov. 29 during a Senate hearing how he plans to rein in prescription drug costs and ensure Americans have access to affordable healthcare coverage and services.

Analysts at Keefe Bruyette & Woods expect the availability of both traditional and alternative reinsurance capital to limit rate increases at the Jan. 1, 2018, renewals, Artemis reported.

A report in The New York Times puts the spotlight on how insurance companies, hospitals and drugstore chains, once viewed as adversaries, are today seeing benefits in teaming up as they face a rapidly changing healthcare environment and brace for potential threats posed by Amazon.

And Ascot Group Ltd. launched Bermuda-based reinsurer Ascot Reinsurance Co. Ltd., according to a news release. Ascot Re has secured an additional investment of $1 billion of funds. Additionally, John Berger, who most recently worked at Third Point Reinsurance Ltd., has joined Ascot Re as CEO.

Featured news

AstraZeneca pitches Tagrisso in Japan; Merck & Co. to set up £1B UK hub: U.S. lawmakers should in the coming year devote attention to the reauthorization of the law that funds the U.S. biodefense enterprise to ensure the nation is prepared to meet any potential chemical, biological, radiological or nuclear threats, said Robert Kadlec, the assistant secretary for preparedness and response at the U.S. Department of Health and Human Services.

Financial news in other parts of the world

Asia-Pacific: Merger talks between Australian super funds fail; S&P maintains India's ratings

Europe: EU banks stronger; Julius Bär gets new CEO; Allianz eyes more of Euler Hermes

Middle East & Africa: S&P downgrades South Africa; Trade Bank of Iraq eyes Saudi, UAE expansion

Latin America: Honduran opposition bet leads in polls; Mexico finance minister set to quit

The day ahead

Early morning futures indicators pointed to a higher opening for the U.S. market.

In Asia, the Hang Seng was down 0.60% to 29686.19. The Nikkei 225 lost 0.24% to 22,495.99.

In Europe as of midday, the FTSE 100 climbed 0.27% to 7,429.64, and the Euronext 100 was up 0.22% to 1,044.02.

On the macro front

The new home sales report, and the Dallas Fed manufacturing survey are due out today.