On Oct. 12, the White House announced that the federal government would immediately stop making payments to insurers, called cost-sharing reductions, that reimburse insurance companies for lowering the costs of health insurance for low-income Americans.
This announcement, thrust cost-sharing reductions into the headlines. The Georgia Health Policy Center recently published a brief and made several presentations on the potential impact of cuts to cost-sharing reductions. These subsidies assist individuals purchasing insurance through the Health Insurance Marketplace by making plans more affordable for consumers, while ensuring that insurance companies do not have to absorb the cost of providing insurance to low-income individuals.
But, ending cost-sharing reduction funding has significant implications for Marketplace consumers and insurers. Halting these payments may cause premiums to increase and insurer participation in the Health Insurance Marketplace to decrease, potentially increasing the cost of health insurance and decreasing consumer choice.
The Georgia Health Policy Center’s Health Reform Work Group is tracking health reform efforts, with keen interest on their impact in Georgia, regarding rates of uninsured, responses from private and public markets, regulations, court decisions, and responses from other states. Please click below to read about cost-sharing reductions:
- Cost-Sharing Reductions in the Health Insurance Marketplace: Uncertainty and Implications for Georgia
- Georgia’s Health Care Reform Task Force Presentation
- Regulation & Administrative Actions Georgia’s Marketplace
Check back for further health reform updates.