Back to top

Trump to End Health Care Cost-Sharing Subsidies

Recently, U.S. Department of Health and Human Services Acting Secretary Eric Hargan and Medicare Administrator Seema Verma, stated that payments to insurance companies for the cost-sharing reduction subsidies (CSR) will be halted immediately. These crucial subsidies are a key component of the Affordable Care Act that assist lower-income enrollees in paying for health care coverage by lowering co-pays and deductibles. Specifically, the CSRs lower out-of-pocket costs, based on income, for silver plans purchased on the health insurance marketplace. Although the administration had been making the payments from month-to-month, President Trump has continuously threatened to cut them off to force Congressional Democrats to negotiate on health care reform. Halting the payments would trigger a spike in premiums for 2018, unless Trump reverses course or Congress authorizes the money.

By Patrick Cooney, The Federal Group, Inc.
Legislative Representative, Dental Trade Alliance