Published 2:49 pm, Wednesday, August 16, 2017
HARTFORD >> Ending billions in federal insurance subsidies would worsen the federal deficit and increase insurance premiums, the Congressional Budget Office warned Tuesday in its report.
Nonpartisan budget analysts said the Trump administration’s pledge to end Affordable Care Act insurer subsidies means premiums will rise by 20 percent in 2018 and 25 percent in 2020.
The cost-sharing reductions, which help insurance companies lower deductibles, co-pays, and coinsurance for low-income individuals, are estimated to cost $7 billion for 2017. But ending them would drive up the federal deficit by an estimated $194 billion through 2026.
“There are no upsides to the Trump administration discontinuing these payments, it will only result in higher premiums, add to the deficit, and further drive insurers out of the marketplaces, leaving the American people with fewer options for health insurance,” U.S. Rep. John B. Larson said Tuesday. “Having failed at taking health care away from millions of Americans, the Administration and Congress must move forward to build upon the success of the Affordable Care Act, rather than seeking to tear it down. I call on President Trump to stop playing politics and do what is right for the American people.”
About 40,000 of the 98,000 individuals enrolled in Connecticut’s health insurance exchange qualify for cost-sharing reductions (CSRs) and 25 percent are qualified for advanced premium tax credits. About 25 percent are receiving no financial assistance.