Premiums To Spike 30 Percent In PA After Trump Cuts O’Care Subsidies

FILE - In this May 18, 2017 file photo, the Healthcare.gov website is seen on a laptop computer, in Washington. Former Obama administration officials say they're launching a private campaign to encourage people to si... FILE - In this May 18, 2017 file photo, the Healthcare.gov website is seen on a laptop computer, in Washington. Former Obama administration officials say they're launching a private campaign to encourage people to sign up for coverage next year under the Affordable Care Act. With the start of open enrollment just weeks away on Nov. 1, the Trump administration has slashed "Obamacare's" ad budget, as well as grants to outside organizations that are supposed to help consumers sign up. (AP Photo/Alex Brandon, File) MORE LESS
|
October 17, 2017 8:49 a.m.

The insurance commissioner in Pennsylvania announced Monday that premiums for health insurance plans available through the Obamacare market place would rise by an average of 30.6 percent due to President Donald Trump’s decision last week to end subsidies to insurance companies.

“It is with great regret that I must announce approved rates that are substantially higher than what companies initially requested,” Acting Insurance Commissioner Jessica Altman said in a statement. “This is not the situation I hoped we would be in, but due to President Trump’s refusal to make cost-sharing reduction payments for 2018 and Congress’s inaction to appropriate funds, it is the reality that state regulators must face and the reason rate increases will be higher than they should be across the country.”

Pennsylvania officials had initially projected rates would increase by 7.6 percent on average before Trump decided to end payments to insurance companies that help insurers cover low-income Americans with significant health needs. The 30 percent rise in premiums will only hit silver level plans, per the Pennsylvania insurance department.

Newsletters
Get TPM in your inbox, twice weekly.
Your subscription could not be saved. Please try again.
Your subscription has been successful.

In her statement, Altman made it clear that Trump’s decision to end the cost-sharing reduction (CSR) payments prompted the significant rate increase.

“The president’s deliberate action and Congress’s failure to appropriate these funds despite repeated requests is forcing large rate increases on consumers in Pennsylvania and around the country, but my department is doing what we can to help our consumers understand their options and hopefully shield them from these rate increases,” Altman said.

Trump’s decision last week to end the payments has caused premiums to rise in several states as insurers file for emergency rate hikes.

Latest Livewire
Comments are now Members-Only

Non-members are still able to read comments, but will no longer be able to participate. To join the conversation, sign up now and get:

30% Off Annual Prime Membership

TPM strives to build as inclusive a community as financially possible. We offer FREE memberships to those experiencing financial hardship and FREE memberships for students.

View all options
Comments
Masthead Masthead
Founder & Editor-in-Chief:
Executive Editor:
Managing Editor:
Associate Editor:
Editor at Large:
General Counsel:
Publisher:
Head of Product:
Director of Technology:
Associate Publisher:
Front End Developer:
Senior Designer: