(BISMARCK, ND) – The administration’s threat to destabilize health insurance markets by withholding cost-sharing reduction payments (CSRs) would devastate some of North Dakota’s most vulnerable communities and directly impact working families who could see their premiums increase by double digits.
“Insurers in North Dakota and across the country rely on these payments to hold down coverage costs, and the mere suggestion that the administration would refuse to honor them is already creating major uncertainty,” said Democratic-NPL spokesperson Daniel Tick. “Acting on these threats to intentionally destabilize the health care market would hurt North Dakota families in a very real way by increasing premiums and possibly forcing insurers out of the market entirely.”
CSRs help keep coverage affordable for 9,557 North Dakotans, which is 47 percent of total marketplace enrollees in the state.
CNBC: How the administration’s threat could impact consumers: The bottom line, experts say, is the payments’ elimination is likely to hurt consumers who buy their insurance through the ACA exchanges and throw the marketplace into greater turmoil. “Low-income people will not see an increase in premiums, but the middle class, who are not subsidized, will see the impacts directly,” said Dr. Mario Molina, CEO of Molina Healthcare […] That’s because premiums would likely rise as insurers cope with the fallout from the decision, and that would result in the government paying more in subsidies to offset those higher premiums. Altogether, it could cost the federal government $31 billion more over a decade than if it continued with the payments, Kaiser found.