States Step Up to Protect Consumers in Wake of Cuts to Cost-Sharing Reduction Payments
<p>President Trump’s decision to end the Affordable Care Act’s cost-sharing reduction reimbursements for marketplace health plans is projected to cost insurers $8 billion in 2018 alone — and it will cost taxpayers, too. </p><p>But in a new post on <em>To the Point</em>, Sabrina Corlette, Kevin Lucia, and Maanasa Kona of Georgetown University’s Center for Health Insurance Reform explain that many marketplace enrollees will be insulated from the resulting premium hikes in 2018, thanks to subsidies that rise with premium costs and the actions of many state insurance departments. And how consumers paying full price fare will depend largely on state officials’ decisions.</p>
<p>The authors break down how each state has managed the uncertainty over — and eventual termination of — the cost-sharing reduction payments. For example, a majority of states assumed payments would not be made and applied the premium increase to silver plans only, leaving bronze and gold plans affordable for people with or without premium subsidies.</p>