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

By JoAnn Volk, Dania Palanker, Justin Giovannelli and Kevin Lucia

The Affordable Care Act (ACA) dodged a bullet last month when a bill to repeal and replace the law failed to garner enough votes. Despite this setback, there are a number of options for the ACA’s opponents to roll back major market reforms. One item on the chopping block is federal subsidies to reduce cost-sharing for low-income enrollees.

The Trump administration has the authority to stop federal payments to insurance companies that fund cost-sharing reductions (CSRs), which reduce the burden of things like copayments and deductibles for eligible consumers. Pulling the plug on these federal payments would force carriers to foot the bill, which could throw the individual market into chaos, leaving consumers without adequate coverage options.

In an updated article, published on The Commonwealth Fund’s To The Point site, CHIR experts JoAnn Volk, Dania Palanker, Justin Giovannelli and Kevin Lucia reexamine the uncertain future of CSRs, options for insurers, and the potential impact on coverage for consumers.

Leave a Reply

Your email address will not be published. Required fields are marked *