The Trump Administration announced that the federal government will no longer make Cost Sharing Reduction (CSR) payments under the Affordable Care Act, ensuring that health insurance premiums will sky rocket in North Carolina. The President also signed an Executive Order that promotes junk health insurance, increasing costs for middle class families and putting North Carolinians at risk of being discriminated against based on pre-existing conditions.
“I’m disappointed to see the Trump Administration attempting to drive up health care costs for middle income families by sabotaging our health care system and withholding tens of millions of dollars a month from North Carolina’s economy. As a result, North Carolinians will see their health insurance premiums rise and our federal deficit will actually increase. At the same time, yesterday’s Executive Order will promote junk plans with high deductibles, no limits on catastrophic costs, and no protections for people with pre-existing conditions. This is unfair and unnecessary,” said Governor Cooper.
CSRs lower copayments and deductibles for North Carolina families. Cutting CSR payments will be particularly devastating in North Carolina, which has the second highest average CSRs in the nation.
“Luckily, the Open Enrollment period for the Health Insurance Marketplace is right around the corner,” Gov. Cooper said. “Consumers who want high quality, affordable coverage can still receive financial assistance and shop for coverage that meets their needs and their budget at HealthCare.gov from November 1 to December 15.”
Rate filings from Blue Cross Blue Shield of North Carolina indicate that without sabotage of CSR payments, North Carolina consumers would see “basically” no rate increase, but because of this sabotage, premiums will increase by 14.1%. An analysis of federal data shows that North Carolina insurance companies provide more than half a billion dollars a year in Cost Sharing Reductions to about 400,000 residents.