Overnight President Trump announced that he would stop making cost-sharing payments (CSR) to insurance companies providing coverage to Americans through Federal Health Insurance Marketplace. These payments annually amount to $7 billion and allow insurers to keep deductibles and copayments in their plans affordable.
This is one more move by the Administration to undermine the Affordable Care Act, the cumulative effect of which will be reflected in the largest premium increases in the five years the Marketplace has been in operation.
The President’s withholding of CSR payments does not affect the availability of individual subsidies to help consumers in South Carolina with their monthly premiums in 2018. It should not keep anyone from seeking affordable coverage in the Marketplace during the upcoming open enrollment period (November 1- December 15). For those consumers entitled to a tax credit, Trump’s decision means that they may be able to recoup much, if not all, of their premium increase with an increase in tax savings.
The Palmetto Project will maintain its Marketplace Outreach and Enrollment Center to assist al South Carolinians in navigating the insurance system and finding the best plans for them. Call us at 888-998-4646.
This blog provides an excellent explanation of how Trump’s decision will affect the insurance markets. We hope to have more specific details on plans and premiums that are available to South Carolinas very soon.