Cost-Sharing Reductions (CSR)

The Honorable Paul Ryan
Speaker
U.S. House of Representatives
Washington, D.C. 20515

The Honorable Nancy Pelosi
Minority Leader
U.S. House of Representatives
Washington, D.C. 20515

The Honorable Mitch McConnell
Majority Leader
U.S. Senate
Washington, D.C. 20510

The Honorable Charles Schumer
Minority Leader
U.S. Senate
Washington, D.C. 20510

Dear Speaker Ryan, Leader Pelosi, Leader McConnell and Leader Schumer:

On behalf of the National Governors Association (NGA), I ask Congress to fully fund the cost sharing reductions (CSRs) for FY 2017 through the upcoming continuing resolution and fund CSRs for FY 2018. Providing certainty to insurers for continued CSR payments is a critical component of stabilizing the individual marketplaces in the short-term.

Funding the CSR payments will ensure that 7 million low-income enrollees will continue to have affordable access to services through reduced cost-sharing obligations, which include lower co-payments, deductibles, and other out-of-pocket costs. However, the House v. Price ruling has caused a great deal of uncertainty as to whether these payments will continue.

Already, many states have seen significant reductions in insurer participation in their individual insurance markets in addition to large increases in unsubsidized premiums. Currently, insurers across the country are developing their rates and deciding whether to participate in the individual marketplaces in 2018. Congress must act immediately to stabilize the marketplaces by providing insurers with the certainty of continued CSR payments.

Governors understand there is still much work to do to establish longer-term solutions to achieve affordable health insurance coverage for our nation’s residents. Governors stand ready to engage in a constructive and thoughtful dialogue with you to ensure the success of future reforms. We look forward to continued collaboration on these important issues.

Sincerely,

Scott Pattison
Executive Director and CEO