Republican Sen. Lamar Alexander and Democratic Sen. Patty Murray have reached a deal to restore the funding for the cost-sharing reduction payments to insurance companies that subsidize the deductibles and other out-of-pocket costs for lower-income Obamacare customers.
As one part of the deal, the subsidies would be funded for two years, a step that would provide at least short-term certainty to insurers. The subsidies, known as cost-sharing reductions, lower out-of-pocket costs for low-income consumers.
A Democratic aide tells Greg Sargent that it includes $106 million in restored outreach funding for open enrollment, in addition to that two years of CSR funding. Meanwhile, Alexander has told reporters that there is "meaningful flexibility." What that "flexibility" is, or what Murray agreed to in terms of loosening Obamacare regulations, is as of yet unclear. Axios is reporting that it includes a "’copper plan’ for people older than 30, which would be less comprehensive than other ACA plans but would have a lower premium,” and “shorter review time for states seeking waivers from some of the ACA's coverage requirements.” More details should be forthcoming.
In a simultaneous press conference, Trump seemed to endorse the Alexander-Murray deal, but also seemed awfully confused as to exactly what it was he was talking about. He might have just been endorsing the thing that he's not claiming as his own plan, the Graham-Cassidy block grants idea, which failed to get enough Republican votes in the Senate. He also said that it has enough votes to pass. It does not. So who knows what the hell is going on in that addled brain.
In the short term, this development isn't likely to have an effect on premiums for 2018, as the big hikes we've seen in a few states just happened this week. There really isn't enough time or certainty for insurers to count on this happening, and for the reimbursements to start flowing.
