CBO Report Projecting the Effects of Stopping Cost-sharing Reductions to Insurers

A report by the non-partisan Congressional Budget Office and the staff of the Joint Committee on Taxation estimates the effect of terminating federal payments to insurers to cover costs incurred when offering plans with reduced deductibles, copayments, and other cost sharing to some people who purchase plans through the marketplaces established under the Affordable Care Act (ACA).

As “The Effects of Terminating Payments for Cost-Sharing Reductions” explains, the ACA requires insurers to offer plans with these reduced deductibles, copayments, and other means of cost sharing to some people who purchase plans through the ACA marketplaces based on their income. In turn, insurers receive federal payments arranged by the Secretary of Health and Human Services to cover the costs they incur because of that requirement.

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