CBO Warns Health Insurance Premiums Could Jump 20% Without Federal Subsidies
Premiums May Rise Over 20% if Federal Subsidies End, CBO Reports
“If the government stopped making the payments, insurers would respond by raising premiums by 20% to 25% over the next couple of years,” which would increase the federal deficit by about $20 billion per year over the next 10 years. These subsidies, known as “cost sharing reductions” or CSRs, are vital to California’s individual market, Covered California. Around 680,000 Californians rely on CSRs to help pay co-pays and lower deductibles.
