Congressman Krishnamoorthi Sends President Trump CBO Report on The Consequences of His Decision to End Key ACA Subsidies
WASHINGTON, DC – In response to President Trump’s announcement last night that he would end cost-sharing reduction payments, a key Affordable Care Act subsidy, Congressman Raja Krishnamoorthi today sent the President a copy of the August 2017 Congressional Budget Office (CBO) Report “The Effects of Terminating Payments for Cost-Sharing Reductions.” The nonpartisan CBO’s report projects that the President’s decision to end cost-sharing reduction payments will increase premiums by 20-25% by 2020 and leave 1 million more Americans uninsured while exploding the deficit by $194 billion over the next 10 years. Notably, the sharpest out-of-pocket cost increases would fall on the 6.7 million middle-class families not receiving subsidies.
Noting President Trump’s promise that “Everybody’s going to be taken care of much better than they’re taken care of now,” Congressman Raja Krishnamoorthi wrote, “The CBO has been long-recognized as an independent, nonpartisan, and fact-based source of data for lawmakers. I have found their research invaluable in the past, and I hope this can be equally helpful to you in keeping your promises to the American people.”
A signed copy of Congressman Krishnamoorthi's letter is viewable here and the full text of Congressman Krishnamoorthi’s letter follows:
October 13, 2017
Donald J. Trump
President of the United States
1600 Pennsylvania Avenue
Washington, DC 20500
Dear President Trump:
When discussing healthcare on September 27, 2015, you promised that “I am going to take care of everybody... Everybody’s going to be taken care of much better than they’re taken care of now.” Earlier this year, on January 15, 2017, you confirmed that “We’re going to have insurance for everybody.”
In light of your decision on October 12 to end the cost-sharing reduction payments, I wanted to call your attention to the August 2017 Congressional Budget Office report entitled “The Effects of Terminating Payments for Cost-Sharing Reductions.”
The conclusions found by the CBO are staggering. Premiums for the average plan would increase 20-25% by 2020, with the full brunt of that cost falling on the consumers. Since 5% of Americans would be unable to purchase insurance on the individual market, 1 million Americans would lose their healthcare. For context, as of October 11, 2017, every county in the United States is expected to have at least one insurance option for 2018's health plans.
Beyond the very human harm, ending CSR payments would have devastating effects on the federal budget. With the above-mentioned increase in premiums, tax credits for premium assistance would necessarily rise as well. Since the government is legally obligated to provide these tax credits, the CBO estimates that the federal budget deficit would increase by $194 billion over 10 years.
This plan is particularly cruel to the 6.7 million middle-class Americans whose premiums will increase but who do not qualify for the tax subsidies. These middle-class families would see their out-of-pocket costs increase just to access the same level of care.
I have enclosed a copy of the report for your review. The CBO has been long-recognized as an independent, nonpartisan, and fact-based source of data for lawmakers. I have found their research invaluable in the past, and I hope this can be equally helpful to you in keeping your promises to the American people.
Member of Congress