OHIC: Federal restoration of CSRs won’t guarantee rate reductions

INSURANCE RATES WOULD most likely remain unchanged until the next enrollment period next year for 2019 even if Congress passes a bill restoring Cost Sharing Reduction subsidies to health insurance companies according to a representative for the Office of the Health Insurance Commissioner. / BLOOMBERG FILE PHOTO/ ANDREW HARRER
INSURANCE RATES WOULD most likely remain unchanged until the next enrollment period next year for 2019 even if Congress passes a bill restoring Cost Sharing Reduction subsidies to health insurance companies according to a representative for the Office of the Health Insurance Commissioner. / BLOOMBERG FILE PHOTO/ ANDREW HARRER

PROVIDENCE —If a bipartisan, congressional restoration of Cost Sharing Reduction subsidies succeeds, a second revision of HealthSource RI’s silver-level health plan rates would require a joint decision between the R.I. Health Insurance Commissioner and HSRI director.

Office of Health Insurance Commissioner’s principal policy associate, Cory King, said that’s unlikely if the CSRs, eliminated by President Donald Trump by executive order, are restored after Nov. 1, when open enrollment for all plans under the Affordable Care Act begins.

The current bipartisan effort to restore CSR payments is led by Tennessee Rep. Sen. Lamar Alexander and Sen. Patty Murray, a Washington Democrat. The Congressional Budget Office report on the bill estimates implementing it would reduce the federal deficit by $3.8 billion through 2018-2027. The bill reportedly has enough support to pass both houses, if it is moved to a vote.

But with four weekdays left before open enrollment, the decision on whether to readjust rates to restore the roughly $8 million cost of the CSRs would require work HealthSourceRI may not be able manage during enrollment.

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“It’s a significant operational undertaking,” King said.

After enrollment begins, the rates would likely remain unchanged until the next enrollment period next year for 2019, when the roughly $8 million in lost CSR payments added to the Silver plans would be subtracted from their now increased cost.

Marie L. Ganim, health insurance commissioner, said her office would explore all options in the event the CSRs are restored. She said particular attention will be paid to making sure insurance customers are reimbursed if the subsidies are brought back.

On Oct. 25, insurers Blue Cross & Blue Shield of Rhode Island and Neighborhood Health Plan of Rhode Island and OHIC presented the approved adjusted rates, almost two weeks after President Trump’s executive order canceled the CSRs Oct. 12.

The average rate increase on individual Silver plan rates for Neighborhood Health Plan of Rhode Island plans in HealthSource RI was 13.5 percent over 2017 rates set in August, and at Blue Cross & Blue Shield of Rhode Island by an average of 20.3 percent.

The latest Silver Plan increases, combined with the rate increases for 2018 announced in August, range from 20 percent for the Blue Cross & Blue Shield of Rhode Island, VantageBlue Direct (4850/9700 deductible) plan to as high as 50 percent for the Blue Cross & Blue Shield of Rhode Island, BlueCHiP Direct (4800/9600 deductible) plan.

Sens. Alexander and Murray picked up negotiations where they left off after “TrumpCare” was most recently rejected by the Senate, according to Sen. Sheldon Whitehouse’s office.

“I believe the Alexander-Murray compromise to stabilize health insurance premiums and reduce the federal deficit would receive broad bipartisan support in the full Senate.  The bill is an example of the productive bipartisan cooperation that we need more of in the Senate, and Leader McConnell should bring it up for a vote,” Whitehouse said.

Rob Borkowski is a PBN staff writer. Email him at Borkowski@PBN.com.

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