U.S. Congresswoman Debbie Dingell (MI-12) today joined 195 House colleagues in sending a letter to President Trump reminding him that millions of working families around the nation are relying on him to continue paying the Affordable Care Act's (ACA) cost-sharing reduction (CSR) payments. Since taking office, President Trump has raised doubts about the future of these payments, which help seven million hardworking Americans and their families afford their out-of-pocket health care costs, such as deductibles and copays, through the ACA Marketplace.
"Ensuring every American has access to affordable, quality health insurance should be a shared goal for the President and every Member of Congress," said Dingell. "Stopping these cost-sharing reduction payments, which are required by law, could put health insurance out of reach for families in Michigan and across the country. It is critical that the President fulfill his obligation to make these payments and stop all other acts of sabotage that could result in millions of Americans losing access to care."
In Michigan, 164,700 people currently benefit from the cost-sharing subsidies. The President's failure to commit to paying these subsidies is destabilizing the Marketplaces, and will directly result in higher health care costs and insurance companies pulling out of the Marketplace, leading to fewer consumer choices. If the Marketplace is destabilized, 313,100 Michiganders who purchased high quality Marketplace coverage would face higher health care costs and fewer choices.
"The decision to unilaterally rescind support for these subsidies will cause premiums and out-of-pocket costs to skyrocket and could cause millions of Americans to lose their health insurance coverage," Dingell and her colleagues wrote. "Insurers have little time left to finalize their rate filings for 2018, and without certainty as to whether or not cost-sharing subsidies will be paid, they will significantly raise their rates or exit the Marketplaces altogether."
In April, a report from the Kaiser Family Foundation estimated that insurance premiums for certain plans would need to increase by 19 percent to compensate for the lack of funding for cost-sharing subsidies.
"Working families in every state are relying on you to pay cost-sharing subsidies to help ensure that they can afford the health care they need," the Members wrote. "The stability of the nation's health care system and the health of millions of Americans now rest in your hands. Their health care coverage is not a bargaining chip."