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Trump Move Would Boost Premiums, Raise Federal Costs, Destabilize Insurance Market
Center on Budget and Policy Priorities
[Opinion] Aug. 1, 2017
"In threatening to stop making federal cost-sharing reduction payments (CSRs) to health insurers providing marketplace coverage, President Trump falsely claimed that they constitute an insurer 'bailout.' Actually, the federal government must make these payments to compensate insurers for reducing deductibles and copayments for low- and moderate-income marketplace consumers, as the [ACA] requires. Ending the CSR payments would boost premiums for many consumers, raise overall federal marketplace subsidy costs, and likely cause some insurers to withdraw from the marketplaces."
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