Bipartisan Discussion to Fix Obamacare Cost Sharing Subsidies

Although there is no fix passed, some and Congress and Trump have discussed a bipartisan fix for ObamaCare’s cost sharing subsidies.^[1]

This shouldn’t be confused to mean that a deal is likely. It only means that at least one deal is in the works. It still needs enough support in to pass, which at this point might be unlikely.

• Last week Trump announced he would end Cost-Sharing Reduction payments.
• The payments were ruled against by a court case, but then President Obama saved them. Thus, this opened the door for Trump to cut them off at the executive level and force Congress to act (or not), like with DACA.
• Ultimately, Trump stopped saving CSRs.
• Those who have CSR assistance won’t lose their assistance (as insurers technically still have to offer the assistance under Section 1402 of the Affordable Care Act; it is only that Trump said the government won’t pay for it). Please note, this does not affect Premium Tax Credits or other assistance.
• Although there is a lot of resistance from Republicans, and things are still uncertain, Trump and some in Congress are pushing for a temporary Bipartisan fix. The fix would ensure payments to insurers, thus preventing cost spikes to premiums of silver plans.
• Sens. Lamar Alexander (R-Tenn.) and Patty Murray (D-Wash.) for example created a fix to stabilize Obamacare, which would fund the subsidies for up to two years. However, others are resisting this and don’t want to see Cost Sharing reduction saved.
• Trump has meanwhile been sending mixed messages. He said he supported making a deal, but then pulled back from the above senate deal to fund health subsidies.^[2]
• Thus, things are very uncertain right now, but there is talks of a Bipartisan fix.

This fix should not be seen as the end of the repeal and replace campaign by the GOP, but rather a fix to stabilize the market in the meantime.

We will keep you updated as we know more.

FACT: The CBO says the Bipartisan Health Care Stabilization Act of 2017 would cut the deficit by $3.8 billion over ten years and would not substantially change uninsured rates

1. Congress’ uncertain path on Obamacare subsidy fix In the short term, a bill to restore funding faces huge hurdles on Capitol Hill, where the White House’s decision has reignited partisan warfare.
2. Trump Pulls Back From Senate Deal to Fund Health Subsidies