Unfortunately, the future of key Covered California subsidies are still in question. Both in a lawsuit and under federal uncertainty to continue funding 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 co-pay of $40 and $5 when going to see a primary care doctor.
Ending CSRs would have grave impacts on more than just the 680,000 Californians who get them. In fact, premiums will go up for everyone in the individual market if the CSRs continue to be 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.