Feinstein Urges Trump to Stop Threats to Sabotage Individual Market

Washington--Senator Dianne Feinstein (D-Calif.) today urged President Trump to abandon his efforts to sabotage the individual insurance market by threatening to stop reimbursing insurance companies for reducing co-pays for low-income enrollees.

Feinstein wrote, "I am greatly concerned that if the federal government does not fulfill its duty in making these payments, it will cause steep increases in premiums and further push insurers out of the market. According to Covered California, halting the cost-sharing reduction payments would result in an additional 12.4 percent increase for Silver level plans in California."

Full text of the letter follows:

August 8, 2017

The Honorable Donald J. Trump

President

The White House

1600 Pennsylvania Avenue

Washington, D.C. 20500

Dear President Trump,

I write to ask that you reconsider your proposal to halt the federal cost-sharing reduction payments to insurers. Failure to make these payments would harm the financial stability and health of millions of Americans.

Cost-sharing reduction payments help reduce out-of-pocket costs, like copays and deductibles, for low-income Americans making between 100 and 250 percent of the federal poverty level ($11,880 to $29,700) so they can afford to use their insurance. The Affordable Care Act requires this reduction so low-income working Americans, both individuals and families, can actually afford to visit a doctor and access the care they need.

I am greatly concerned that if the federal government does not fulfill its duty in making these payments, it will cause steep increases in premiums and further push insurers out of the market. According to Covered California, halting the cost-sharing reduction payments would result in an additional 12.4 percent increase for Silver level plans in California. The cost is even higher in other parts of the country. According to both the Kaiser Family Foundation and the Joint Economic Committee, there would be a 19 percent average increase in premiums if these payments stop.

Additionally, stopping these payments actually costs the federal government more money. It doesn't save anything at all. It would cost the federal government $31 billion more over 10 years, due to the increased premium costs.

Please work with Congress to protect the American people and stabilize the insurance market.

Sincerely,

Dianne Feinstein

United States Senator

Read this original document at: https://www.feinstein.senate.gov/public/index.cfm/press-releases?ID=0B8765D3-AF48-4697-B12F-B42DB97DE5BA