Unfortunately, the future of key Covered California subsidies is still in question, both in a lawsuit and under federal uncertainty about continuing to fund the program.
Called “cost-sharing reductions” or CSRs, these special payments help pay co-pays, reduce deductibles, and lower co-insurance for qualified members of Covered California’s health plans. These CSRs can mean the difference between a $40 and $50 co-pay when seeing a primary care doctor.
Ending CSRs would have grave impacts on more than just the 680,000 Californians who get them. Premiums will increase for everyone in the individual market if the CSRs remain unfunded. This will happen in the federal marketplace as well.
The State of California wants to intervene in the lawsuit challenging the CSRs. Until that case or the federal administration makes a decision about the future of CSRs, Covered California is telling plans to prepare for these challenging times.
