North Dakota’s Insurance Commissioner said President Trump’s decision to end health insurer subsides under the Affordable Care Act could mean health insurance premiums going up.
The payments are called “Cost Sharing Reductions.” They go to insurance companies to help reduce the premiums paid by lower income people buying health insurance on the ACA marketplace.
Commissioner Jon Godfread said this could affect about 42,000 North Dakotans who are on the individual marketplace. Godfread said it’s unfortunate these CSR payments have been – as hel put it –“over politicized .” And he said the punishment will be on the consumer.
"By pulling out those CSR payments, you are possibly punishing that group even more," Godfread said. "If rates go up, the group who makes too much to receive the subsidy may see an even further increase."
Godfread said that will likely push some people out of the marketplace.
"They may say, 'We can't afford this,'" Godfread said. "That's a dangerous game to play for North Dakotans and for their families."
Godfread said there are still some unanswered questions about the order – including whether insurance rates can and will be adjusted. He said those decisions were made before the order was issued. Godfread said there appears to be a small window to re-open the rates and make adjustments – but his office will still be looking into that.
Godfread said he understands the timing of the President's order, because of a frustration with Congress not doing anything on the ACA.
"The timing's tough," Godfread said. He's also concerned this may lead to a lot of misinformation – and fraud.
"You're going to have folks calling and saying, 'I'm here to offer you some great health care that's going to cut your costs in half,'" Godfread said. "They're being sold a junk policy. And they go to the doctor and realize nothing's covered."
Godfread said his office is planning a consumer education effort – to try and combat potential fraud.
