President’s Executive Order on health care will destabilize insurance markets

Written by: Children's Campaign
Date Posted: October 13, 2017

The President announced late last night that the Administration will end the payment of cost-sharing reduction payments (CSRs) to health insurance issuers under the Affordable Care Act. As we’ve discussed before in KidsFlash, CSRs help reduce out-of-pocket costs of health insurance coverage for lower income consumers. Every month, issuers have been receiving CSR payments from the Administration to cover these costs.

The Colorado Division of Insurance (DOI) stated that eliminating the CSR payments will cause health insurance premiums to increase across the state, with an average increase of six percent. This afternoon, the Division stated, “Now that the Trump administration is purposefully making people pay more for their health insurance, the DOI will move to the non-CSR-funded rates [that were also submitted by issuers this summer]. These rates have already been reviewed by the DOI, and today the division is pushing the new premiums to Connect for Health Colorado so they can be loaded into its system. The Division’s plan is that open enrollment will continue as scheduled, Nov. 1 – Jan. 12.” The Congressional Budget Office has projected that if CSR payments are not made next year, premiums in the individual market would increase by 20 percent on average nationwide in 2018 and 25 percent by 2020 and that failure to make the payments will increase the federal deficit by $6 billion in 2018, and by a total of $194 billion over the next 10 years.

Adela Flores-Brennan made the following statement on behalf of the Protect our Care Colorado Coalition, “Congress must move immediately to stabilize the individual market with a bipartisan bill and reinstitute these cost-sharing payments, or Colorado’s individual market could spiral out of control rapidly.”

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The Colorado Children’s Campaign is a nonprofit, nonpartisan advocacy organization committed since 1985 to realizing every chance for every child in Colorado. We advocate for the development and implementation of data-driven public policies that improve child wellbeing in health, education and early childhood. We do this by providing Coloradans with trusted data and research on child wellbeing and organizing an extensive state-wide network of dedicated child advocates. For more information, please visit