MADISON — On Tuesday, August 15th, the independent CBO released their report on the impacts of President Trump’s refusal to continue payments for healthcare Cost Sharing Reductions. By ending those payments, the Trump plan would increase premiums by 20% in 2018, and increase our federal deficit by $194 billion, while sabotaging affordable healthcare for those who need it most.
Martha Laning Statement:
“Scott Walker already sabotaged Wisconsinite’s checkbooks by not accepting millions in federal funds to ensure affordable healthcare for more hard-working families. This new Trump scheme, and Governor Walker’s support for it, will add a Premium Tax to our healthcare system, and in some cases will leave consumers without any form of available health insurance coverage.
As Walker continues to play politics at the expense of Wisconsin families, the rest of us need to come together and work towards a genuine bipartisan solution that improves and strengthens our current health care system.”
Republican Senator Statements:
GOP Chairman of the Senate Health Committee, Lamar Alexander:
“Without payment of these cost-sharing reductions, Americans will be hurt. Up to half of the states will likely have bare counties with zero insurance providers offering insurance on the exchanges, and insurance premiums will increase by roughly 20%, according to America’s Health Insurance Plans (AHIP).”
Mike Rounds, (R-SD):
I think the president still needs to, in the short term, give us the opportunity to still succeed at a healthcare reform package. That means allowing the cost sharing arrangements to continue for a period of time.”
Related News on CBO Report:
The cost is “eye-poppingly large,” says Nicholas Bagley, a professor of health law at the University of Michigan. “This single policy could effectively end up costing 20 percent of the entire bill of the ACA.”
“If you can cover roughly the same number of people for about $200 billion less, why wouldn’t you want to do that?”
…the report was mostly terrible news, including a 20% premium increase for 2018 and a $194 billion increase in the federal deficit over the next 10 years (because of the bigger tax credits to cover the higher premiums).
“Ending the payments to insurers would introduce more chaos into an unsettled market, and perversely end up costing the federal government more in the end,” said Larry Levitt of the Kaiser Family Foundation.