County residents with silver plans will pay more
President Donald Trump's decision to eliminate funding for cost-sharing reductions will result in higher premiums for Clark County residents with silver health plans.
Last month, the state insurance commissioner and the Washington Health Benefit Exchange -- which operates the state-based exchange, Washington Healthplanfinder -- announced an average 24 percent increase in health plan costs for 2018. The announcement came with a caveat. If funding for cost-sharing reductions was eliminated, the state insurance commissioner had approved even higher rates for silver plans.
The cost-sharing reductions, or CSRs, are subsidies to health insurance companies to help offset the cost of providing plans to low- and moderate-income people. The Affordable Care Act requires insurance companies to discount out-of-pocket costs to customers who qualify for CSRs in silver plans. The president's decision to eliminate the CSRs means insurers will increase costs to make up for that shortfall. (The decision does not affect the cost of bronze, gold or catastrophic plans.)
In Clark County, that means residents with silver plans will see increases ranging from $38 to $66 per month.
For example, a Kaiser Foundation of the Northwest silver plan with a $3,500 deductible was set to cost $351 to $369 per month. With the elimination of the CSRs, the monthly premium will now be $414 to $435.
LifeWise Health Plan of Washington's silver plan with a $4,000 deductible was going to cost $354 to $406 per month. Now, the premium will be $405 to $464 per month. And the monthly premiums for Molina Health Care of Washington's silver plan with a $4,950 deductible are increasing from $324 to $373 with the CSRs to $362 to $416 without the payments.
State Insurance Commissioner Mike Kreidler called the president's decision a "devastating blow" to Washington residents and said the action threatens the stability of the individual health insurance market.
"The president's short-sighted decision, combined with his executive orders announced Oct. 12, are certain to result in higher premium payments for consumers and will force our insurers to determine whether they will remain in an unstable market," Kreidler said in a news release. "Consumers and insurers are at great risk of harm because of the president's actions."
Kreidler said he's considering action to challenge the decision.
Sen. Patty Murray, a top Democrat on the Senate health committee, called the president's decision reckless and spiteful.
"This pattern of governing by sabotage only makes it more critical that Congress show patients and families we can work together to undo the damage President Trump is causing," Murray said in a news release. "I continue to be optimistic about our negotiations and believe we can reach a deal quickly -- and I urge Republican leaders in Congress to do the right thing for families this time by supporting our work."
Democrat Sen. Maria Cantwell said she too remains committed to enacting bipartisan policies to bring down costs. The president's action, she said, "takes us in the opposite direction."
"President Trump is doubling down on throwing insurance markets into chaos," Cantwell said in a news release.
- Marissa Harshman