President Trump has ended subsidy payments to health insurers across the country that sell health coverage through the Affordable Care Act (ACA) Exchanges, including Covered California. This includes L.A. Care Covered. These subsidy payments, called Cost Sharing Reductions (CSRs), are paid directly to the health plans and were designed to make the plans more affordable.
The circular reasoning of the administration is that CSRs are “bailouts” for insurance companies. A bailout according to Webster’s dictionary is a “rescue from financial distress.” The CSR provision was included in the ACA to avoid financial distress. By removing it, the administration is creating financial distress, thereby increasing the likelihood of the need for a bailout in the future.
Since Congress did not pass any legislation to repeal or replace the ACA, it is still the law of the land, and I believe that the administration is derelict in its duty to uphold the ACA.
What does this mean for our L.A. Care Covered members?
Members should know that this does NOT affect your current coverage or access to care.
- Your current premiums and co-pays will NOT change because of this announcement.
- Keep visiting your doctor, and filling your medications.
We are committed to continuing your health coverage through L.A. Care Covered next year. The large majority of our members still qualify for a separate tax credit subsidy that is unaffected by the President’s recent action, which keeps your premium costs affordable. Renewal information will be sent to you soon, and you can check our website in November for more information.
What does this mean for L.A. Care?
Covered California wisely published rates that did not include CSRs, knowing this was a possibility. Even with the loss of the CSRs, L.A. Care is still eager to educate current members and uninsured consumers about the importance of health coverage during open enrollment season. We are the most affordable plan in Los Angeles County for the Silver, Gold and Platinum tiers with a robust provider network.
What does the future hold?
While I can’t predict the future, I can reaffirm my commitment to the ACA and to L.A. Care Covered.
Despite the uncertainties we are facing, we are committed to being a participating plan in Covered California. As a publicly-run health plan, being on the exchange is part of our mission to serve people who may transition from our Medi-Cal plan to our commercial plan.
Participating in the exchange also helps L.A. Care fulfill its mission to elevate health care for the vulnerable and low-income populations in Los Angeles County, as well as those who have had the most challenges obtaining health insurance coverage.