Covered California Cost-Sharing Reductions (CSR)
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.
Cost-Sharing Reductions, also known as, CSRs, are special payments that 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.
“Future of ACA Subsidies in Limbo” article from the San Francisco Chronicle
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.
“The Effects of Ending the Affordable Care Act’s Cost-Sharing Reduction Payments” article from KFF.org (2017)
If the CSR payments end – either through a court order or through a unilateral decision by the Trump Administration, assuming the payments are not explicitly authorized in an appropriation by Congress – insurers would face significant revenue shortfalls this year and next.
State attorney general wants to defend Obamacare cost-sharing subsidies
The State of California wants to intervene in the lawsuit challenging the CSRs. California Atty. General Xavier Becerra took legal action to protect a provision of the Affordable Care Act that lowers the cost of health insurance for millions of people.
Covered California Tells Insurers to Plan for the Worst
Amid growing uncertainty over federal health care funding, Covered California is calling on health insurers to prepare for the worst.
