Statement of ACAP on Discontinuation of Cost-Sharing Reduction Subsidies
FOR IMMEDIATE RELEASE: October 13, 2017
FOR MORE INFORMATION: Jeff Van Ness, (202) 204-7515
STATEMENT OF ACAP CEO MARGARET A. MURRAY ON DISCONTINUATION OF COST-SHARING REDUCTION SUBSIDIES
WASHINGTON—Margaret A. Murray, CEO of the Association for Community Affiliated Plans (ACAP), made the following statement on the decision of the Trump Administration to discontinue cost-sharing reduction payments to health plans:
“This decision will lead to less competition, fewer choices for consumers, and higher costs for all of us, regardless of where we get our health insurance.”
“The payments ceased by the Trump Administration reimburse health plans, who cover the costs of deductibles and copays for their members who qualify for cost-sharing reductions through Marketplace plans owing to low incomes. More than half of all Marketplace consumers benefit from such subsidies, which totaled $4.9 billion in 2015. These subsidies are estimated to be up to $7 billion this year, or about 15 percent of premium.
“For the rest of 2017, insurers are required to fund cost sharing reductions on their own. Some plans will find their continued presence in the Marketplaces beyond this year to be an unsustainable proposition, and will likely leave the market.
“Contrary to the Administration’s proclamations, this decision will not save taxpayer dollars but will become a net cost to the federal government. As premiums go up – and they will rise higher than they otherwise would have thanks to this decision – so too will the amounts the Federal government must pay in advance premium tax credits. This will lead to a higher burden for all taxpayers.
“The Pottery Barn Doctrine – you break it, you buy it – applies to health care too. Congress and the Administration own the consequences of this unconscionable decision, lock stock and barrel.
“It’s time for Congress to move quickly to repair the damage wrought by this decision. We call on Congress to bring a modicum of stability to the market and fund the CSRs immediately.”
ACAP represents 61 nonprofit Safety Net Health Plans in 29 states, which collectively serve more than 21 million people enrolled in Medicaid, Medicare, the Children’s Health Insurance Program (CHIP), and other public health programs. For more information, visit www.communityplans.net.
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