States Step Up to Protect Consumers in Wake of Cuts to ACA Cost-Sharing Reduction Payments

By Sabrina Corlette, Kevin Lucia, and Maanasa Kona

On October 12, President Trump announced he would discontinue reimbursements to insurance companies for Affordable Care Act (ACA) cost-sharing reduction (CSR) plans offered through the health insurance marketplace. Ending the CSR reimbursements is projected to cost insurers $8 billion in 2018 alone – but will ultimately cost taxpayers, too.

Thanks to the way the ACA’s subsidies are structured and the actions of many state insurance departments, many marketplace enrollees will be insulated from the resulting premium hikes. How unsubsidized consumers fare, however, will depend largely upon decisions made by state officials.

In their latest post for the Commonwealth Fund’s To the Point blog, CHIR’s Sabrina Corlette, Kevin Lucia, and Maanasa Kona provide a 50-state overview of how states and insurers approached the uncertainty over CSR funding and its potential impact on consumers. To learn how your state’s insurers responded, read the full post here.

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