CBO report estimates impact of ending cost-sharing reductions

If federal payments to reduce out-of-pocket costs for low-income individuals purchasing coverage through the Health Insurance Marketplaces were to end, premiums for silver-level plans would be 20% higher in 2018 and 25% higher in 2026, the Congressional Budget Office estimated today. Individuals receiving tax credits would largely be protected from the price increases, but those paying full cost would face higher premiums. The report estimates that 1 million more individuals would be uninsured in 2018 – largely as a result of insurers leaving a handful of markets in response to the policy. However, in 2020 and beyond, more people would be covered through the marketplaces because higher premium tax credits would incentivize enrollment, CBO says. The report also estimates these changes would increase the federal deficit by $194 billion from 2018 through 2026. The AHA has been urging Congress to fund the cost-sharing reductions and avoid the potential disruption such a policy would have on millions of Americans.