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CBO Analysis of Effect of Cost Sharing Reduction Payments

Jane McNichol

Posted 8/17/2017

The Congressional Budget Office (CBO) has released its analysis of the effect of ending ACA cost sharing reduction payments (CSRs). Cost sharing reduction payments lower co-pays and other out-of-pocket expenses for people who buy insurance on ACA health care exchanges (Access Health CT in Connecticut), and whose income is between 100% and 250% of the federal poverty level.
The CBO estimates that ending CSR payments would increase premium costs by 25% and would increase the federal deficit by $194 million over the next 10 years. Read the CBO analysis here and a Reuters article on this issue here.
Some Congressional leaders are currently considering introducing a bill to stabilize the health insurance exchange markets, including requiring the federal government to pay CSRs. Currently, the Trump administration has the option of refusing to pay CSRs and has been deciding whether or not to make these payments on a month-to-month basis. The administration announced recently that payments for September will be made.