When this topic was first introduced no details were available, we assumed there would be additional announcements or instructions. This is not the case. Effective immediately, the federal gov’t has announced it will stop reimbursing health insurers for the cost sharing reductions in the silver exchange plans.
How will this impact us? We don’t know. This measure is directed toward insurers, not consumers, and does not affect in any way the premium tax credit.
Anyone wanting to know more about what Cost Sharing Reductions are can find a good summary here. https://www.kff.org/health-costs/issue-brief/cost-sharing-subsidies-in-federal-marketplace-plans/ Cost sharing affects approximately 58% of all exchange users, and cost around $7B this year (source Commonwealth Fund)
Here are links to some helpful analyses on the impact of this measure
- CBO analysis https://www.cbo.gov/system/files/115th-congress-2017-2018/reports/53009-costsharingreductions.pdf
- Commonwealth Fund Eliminating Cost-Sharing Reductions in ACA - The Commonwealth Fund and One-two punch to the health insurance marketplaces and the people they cover - The Commonwealth Fund
- Kaiser Health https://www.kff.org/health-reform/i...le-care-acts-cost-sharing-reduction-payments/
- Health Affairs blog A Fateful Thursday For The ACA: Likely Effects And Legal Reactions
This Baloon-Juice link looks at how different states are responding https://www.balloon-juice.com/2017/10/12/csr-wont-be-paid/
It is safe to assume insurers will not offer the same CSR-subsidized policies at the same price next year. They will either withdraw those policies, increase the price on those policies, or increase the price on all policies.
We can assess how this impacts us and what alternatives we have. As always, let’s avoid partisan politics and snark, and stay focused on insurance. Some states have already informed policyholders how this will affect 2018 policies, those affected can share that info with the rest of us.
How will this impact us? We don’t know. This measure is directed toward insurers, not consumers, and does not affect in any way the premium tax credit.
Anyone wanting to know more about what Cost Sharing Reductions are can find a good summary here. https://www.kff.org/health-costs/issue-brief/cost-sharing-subsidies-in-federal-marketplace-plans/ Cost sharing affects approximately 58% of all exchange users, and cost around $7B this year (source Commonwealth Fund)
Here are links to some helpful analyses on the impact of this measure
- CBO analysis https://www.cbo.gov/system/files/115th-congress-2017-2018/reports/53009-costsharingreductions.pdf
- Commonwealth Fund Eliminating Cost-Sharing Reductions in ACA - The Commonwealth Fund and One-two punch to the health insurance marketplaces and the people they cover - The Commonwealth Fund
- Kaiser Health https://www.kff.org/health-reform/i...le-care-acts-cost-sharing-reduction-payments/
- Health Affairs blog A Fateful Thursday For The ACA: Likely Effects And Legal Reactions
This Baloon-Juice link looks at how different states are responding https://www.balloon-juice.com/2017/10/12/csr-wont-be-paid/
It is safe to assume insurers will not offer the same CSR-subsidized policies at the same price next year. They will either withdraw those policies, increase the price on those policies, or increase the price on all policies.
We can assess how this impacts us and what alternatives we have. As always, let’s avoid partisan politics and snark, and stay focused on insurance. Some states have already informed policyholders how this will affect 2018 policies, those affected can share that info with the rest of us.