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CA Department of Insurance

Jones says CBO report confirms the need for funding ACA requirements

News: 2017 Press Release

For Release: August 15, 2017
Media Calls Only: 916-492-3566
Email Inquiries: cdipress@insurance.ca.gov
Jones says CBO report confirms the need for funding ACA requirements

SACRAMENTO, Calif. — "The Congressional Budget Office (CBO) report released today about the effects of terminating payments for Cost-Sharing Reductions (CSRs) required by the Affordable Care Act details multiple harms that will befall consumers and the health insurance market unless President Trump and Republican Congressional leaders stop their attempts to destabilize the health insurance market. If the Trump Administration and Congressional leaders fail to fund the CSRs, premiums will increase substantially for Americans who buy the most popular products in the health exchanges, the federal deficit will increase, and health insurers will leave the market. The refusal to commit to provide the funding required by the ACA has caused uncertainty that has already led some insurers to withdraw products from the health insurance market and increase premiums for 2018. Clearly the appropriate response to the CBO report is for President Trump and Congressional leaders to announce now that when the Congress returns in early September they will fund these ACA payments. Unless the President and Congressional leaders make this funding commitment now, it may be too late to prevent double digit premium increases in 2018."

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Media Notes:

  • The CBO report confirms that terminating the CSR payments results in a destabilized market, increased premiums and increased costs to the federal government. The CBO estimates, for Silver plans offered through the Exchanges, there would be an average 20 percent increase in 2018 and a 25 percent increase by 2020. Withholding the CSRs will increase the federal deficit, on net, by $194 billion from 2017 through 2026. The CBO predicts that insurers in some states would withdraw from or not enter the individual market because of substantial uncertainty about the effects of withholding the CSR payments on average health care costs for people purchasing coverage.
  • The CSRs reduce deductibles and co-pays for millions of Americans. President Trump has injected significant uncertainty into the health insurance market by deciding on a month-by-month basis if the federal government will follow the law and pay the CSRs. As a result, of the instability created by the Trump Administration, some insurers have already announced plans to exit markets in 2018, while other insurers have announced significant premium increases for 2018.


The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.

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