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Washington, D.C.-Yesterday, under the cover of night, the Trump administration announced it would stop payments for the cost sharing reductions (CSRs), which help lower income enrollees lower their out-of-pocket costs for things like copayments and coinsurance.

Withdrawing this critical funding will drive up premiums for millions of individuals and families.  This move will not only result in higher rates of uninsurance but also destabilize the entire health insurance market.

This announcement was made mere hours after President Trump signed an executive order that will result in lower quality health care plans and higher costs for countless Americans, particularly those who have pre-existing conditions. This action is clearly designed to separate healthy people from sick people in order to disrupt the individual market and sabotage the Affordable Care Act (ACA)-- and people with pre-existing conditions are going to pay the price. In addition, this EO intends to bait young people into buying health plans that likely won’t cover basic health care services, such as maternity care and preventive care  like birth control -- all of which disproportionately impacts young women.

This action follows the administration’s decision last week to eliminate the guarantee that health insurance will cover birth control - a guarantee that 62 million women rely on.

Statement from Dawn Laguens, Executive Vice President of Planned Parenthood Federation of America:  

In the dead of night, President Trump has sabotaged health care for millions of Americans. Trump has made birth control more difficult to access, put maternity care in danger, and is making health care more expensive and more difficult to get --- all as part of a twisted political game with people’s health.

“This administration has taken every opportunity to attack basic health care, and woman have paid the price.  The American people made it clear that they do not want to see health care for millions taken away, but President Trump has decided to ignore them and instead put partisan politics first, putting the health and lives of countless people at risk.

Background on cost-sharing reductions (CSRs)

Cost-sharing subsidies are only available to lower income enrollees. Specifically, consumers with an annual income below 250% of the FPL ($29,770 for an individual and $60,750 for a family of four), receive these subsidies to assist them with accessing services.

Nearly 60 percent of Marketplace enrollees - nearly 7 million people - receive cost-sharing subsidies, and for many, cost-sharing subsidies help move them from having coverage to actually being able to access care, such as prescriptions and specialty care visits.

The nonpartisan Congressional Budget Office found earlier this year that eliminating funding for cost- sharing reductions would raise  premiums at least 20%.

Nearly eleven million people, including 6.8 million women, currently purchase insurance on health insurance Marketplaces.

The reduced financial assistance provided to low- and middle-income individuals would disproportionately impact women, particularly women of color, given the inequities in earnings for women.

This will further exacerbate existing racial and ethnic health care disparities given that among those privately insured, African American and and Latino communities already report less confidence in their ability to afford medical costs, and these communities are less likely to have a regular source of care.

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Planned Parenthood is the nation’s leading provider and advocate of high-quality, affordable health care for women, men, and young people, as well as the nation’s largest provider of sex education. With more than 600 health centers across the country, Planned Parenthood organizations serve all patients with care and compassion, with respect and without judgment. Through health centers, programs in schools and communities, and online resources, Planned Parenthood is a trusted source of reliable health information that allows people to make informed health decisions. We do all this because we care passionately about helping people lead healthier lives.