What is the ACA subsidy Trump is ending? Here’s what it will mean for you

THE TENNESSEAN

October 13, 2017 —What is a cost-sharing reduction? It’s a payment directly to insurers for subsidizing out-of-pocket costs, including deductibles, for people who make 100-250 percent of the federal poverty line and buy a silver plan on the exchange.

It is separate from tax credits, which offset the monthly premium for people who qualify. CSRs are being contested  in a suit brought by GOP members in the U.S. House. Some shoppers receive both a tax credit and have a CSR payment made on their behalf to the insurer by the government.

Fifty-nine percent of Tennesseans qualify for a CSR from insurers but the future of the payments could impact premiums for 70 percent of people who buy plans, according to the Sycamore Institute. In 2016, BlueCross BlueShield of Tennessee members eligible for a CSR saved $88.9 million.

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