Following is a statement from Blue Cross Blue Shield of Michigan on today’s decision by the Trump Administration to eliminate Cost Share Reduction funding. The funds help people with annual incomes between $24,000 and $61,500 (for a family of four) who purchase Silver-level qualified health plans on the ACA Marketplace by allowing their insurers to reduce their required cost-sharing amounts. Recognizing the potential for the elimination of this funding, the Michigan Department of Insurance and Financial Services requested all insurers to file two sets of ACA rates – one set (lower-priced) with the funding included and the other set (higher-priced) without it. Consumers who own ACA plans will see no impact to their 2017 plan pricing. Consumers will see increases for their 2018 plan pricing.
“We are disappointed in the Administration’s decision to discontinue funding for cost-share reductions,” said Daniel J. Loepp, President and CEO of BCBSM. “The decision means that the higher premiums requested and approved by Michigan regulators in anticipation of this action will remain in place for 2018.
“Elimination of CSR funding means that 2018 premiums will be more expensive for all purchasers of ACA Silver plans, and it will be particularly challenging for people who don’t qualify for much of a tax credit. Congress should act to reinstate this funding, protect affordable coverage for people and keep private insurers in the market to offer coverage. We encourage Congress to work in a bipartisan fashion toward these goals.
“Blue Cross Blue Shield of Michigan desires to offer coverage in the individual market, and we will offer coverage in all 83 Michigan counties for the upcoming open enrollment. But that coverage will be significantly more expensive and our members are concerned about that. We remain committed to working with policy makers at the federal and state levels – from both political parties – on policy changes that keep quality health coverage within reach for our members and enable us to serve the market long-term.”