Trump Administration Terminates Cost Share Reduction Subsidy Payments

On Thursday, in addition to issuing an executive order to make changes in health reform, the administration announced that the federal government would cease paying all CSRs immediately.

Cost Sharing subsidies are not the same as tax credit subsidies. 

Tax credit subsidies, which can be advanced, are applied to the premium payment on a health insurance plan purchased through the marketplace.

Cost Share Reduction subsidies are available to help lower the costs of services under the health plan,   CSR applies to things like deductible, co-pay, drug cost and out of pocket annual maximum.  All CSRs are in the Silver metal tier and, depending on income level, can be at 73%, 87% or 94% reduction.  

In California the CSR is available to people who have income between 138%-250% of the federal poverty level (see chart).  

In response, health insurers have increased the premium rates for all indiviudal & family Silver tier plans to make up for the loss of funding.  

Those enrolled in Enhanced Silver plans will not see any real change in cost share and in tax credit subsidy.  Those who do not qualify for tax credit subsidy and enroll in Silver plans will see a marked increase in premiums for 2018.  

Kaiser Health News links to various news articles



Dave
www.davefluker.com

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