Loss of Cost-Sharing Reductions in ACA Marketplace: Impact on Consumers and Insurer Participation

While there has been considerable discussion of the new Congress’s plans to repeal and replace the Affordable Care Act (ACA), there is another, potentially more immediate, threat to millions of Americans that could materialize without legislative action. Under the ACA, insurers must reduce the cost-sharing obligations of low-income enrollees, such as their copayments and deductibles. Almost directly after taking office, the Trump administration can pull the plug on government payments that support these cost-sharing reductions (CSRs), a move that could throw the individual health insurance market into chaos, especially given that insurers will still be legally required to offer this subsidy to eligible enrollees.

In a new article published on The Commonwealth Fund’s To The Point site, CHIR experts JoAnn Volk, Dania Palanker, Justin Giovannelli and Kevin Lucia look at the impact of losing CSR funding on plan participation and consumers’ access to coverage.