The future of cost-sharing reduction payments topped the minds of state officials congregating at the National Association of Insurance Commissioners' summer meeting in Philadelphia, The New York Times reports.
Here are five takeaways from the meeting, which began Aug. 6 and ends Aug. 9.
1. If the cost-sharing reduction payments — which help insurers subsidize the cost of coverage for low-income Americans — are discontinued, state insurance officials predict payers will raise premiums in 2018 and more will exit the individual insurance market.
2. President Donald Trump threatened to terminate the payments, which are estimated to total between $7 billion and $10 billion for next year, repeatedly. However, as of this week he hasn't issued a decision on whether to continue the payments.
3. Craig Wright, chief actuary at the Florida Office of Insurance Regulation, told The New York Times payers will see a "small profit" if the funds are ensured, but "face the prospect of large financial losses" if they cease.
4. Several state officials expressed sentiments of urgency over determining 2018 rates amid uncertainty from the Trump administration. If the cost-sharing reduction payments aren't distributed, some state officials may allow insurers to administer a surcharge on premiums. Others are considering transferring extra costs to silver plan exchange premiums, which would be offset by the federal government through tax credits for low-income individuals.
5. The NAIC invited Trump administration representatives to speak to meeting attendees and listed Trump administration individuals on at least one public session, the report states. However, no White House officials attended the meeting.
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