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3 potential 2018 scenarios if federal CSR payments stop

The Urban Institute analyzed three 2018 scenarios that could occur if federal CSR payments stop.

By Katie Kuehner-Hebert | Updated on September 08, 2017
The fate of CSR payments is currently being decided on a month-to-month basis. Pablo Martinez Monsivais / AP

If insurers flee the marketplaces because the federal government stopped making cost-sharing reduction payments, premiums on the most popular plans on Affordable Care Act exchanges could spike as much as 37 percent, and the number of uninsured Americans could increase by 9.4 million in 2018, according to a report by the Urban Institute, with funding from the Robert Wood Johnson Foundation.

The fate of CSR payments is currently being decided on a month-to-month basis. The Trump administration and the House of Representatives have requested delays on the hearing of the House’s 2016 lawsuit against the former Obama administration over the CSRs, arguing that the Treasury could not reimburse insurers for these subsidies because the funds had not been explicitly appropriated by Congress.

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Katie Kuehner-Hebert

Katie Kuehner-Hebert

Katie Kuehner-Hebert is a freelance writer based in Running Springs, Calif. She has more than three decades of journalism experience, with particular expertise in employee benefits and other human resource topics.

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