Last week, the Kentucky Chamber of Commerce sent a letter to members of the state’s congressional delegation urging Congress to fully fund the cost-sharing reduction (CSR) payments. The Chamber believes this is critical for individual health insurance markets in Kentucky.
That letter, signed by Kentucky Chamber of Commerce Vice President of Public Affair, points out that insurers are currently trying to price plans for next year but uncertainty surrounding CSR payments is making that process difficult.
CSR payments are designed to help reduce deductibles, co-payments, and out of pocket costs. These payments help those most in need access quality healthcare. Nearly 60 percent of all individuals who purchase coverage via the marketplace receive CSR payments to help reduce deductibles and co-payments.
If the payments cease, many fear that insurer participation in exchanges would diminish, premiums would rise, consumers would see costs rise, and providers wouldn’t be compensated for services.
Watts’ letter stated that payments must be made to provide necessary short-term stability to the individual health insurance market.
Other groups, including the US Chamber, have urged Congress to fund CSR payments.