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August 15, 2017

STATEMENT BY NEW YORK SUPERINTENDENT OF FINANCIAL SERVICES MARIA T. VULLO ON CONGRESSIONAL BUDGET OFFICE REPORT ON THE IMPACT OF NON-PAYMENT OF COST SHARE REDUCTION FUNDS OWED UNDER THE AFFORDABLE CARE ACT

As the Congressional Budget Office (CBO) Report today confirms, withholding promised payments to insurers for reducing out-of-pocket costs for consumers as required under the Affordable Care Act (ACA) will result in real harm in many states across the country. The CBO confirms that President Trump's misguided threats to withhold these Cost Share Reduction (CSR) payments will generally result in higher premiums and an increased federal budget deficit. This is part of a concerted effort by the Trump administration and members of Congress who care more about tax cuts than people’s lives to undermine the viability of the health insurance market for individuals. For example, the consistent threats to repeal or not enforce the ACA’s individual responsibility mandate deter younger, healthier enrollment that raises rates for everyone else.

New York will continue to fight to maintain the gains of the ACA: lower rates, better coverage and a healthier individual market. Indeed, the impact of federal failure to repay CSR funds owed will be substantially less in New York because we have embraced the ACA. In a forward-thinking policy, New York is one of two states to adopt the Essential Plan under the ACA, a program that provides quality coverage to lower income individuals at substantially reduced premiums. As a result of this program, the impact on the individual commercial market of potentially lost CSR payments from the federal government is less than 1% in New York.

It is time for the federal government to protect healthcare for all by making the CSR payments and ending the threats to Americans' healthcare.

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