California's Obamacare marketplace said Thursday it will require insurers submit two sets of proposed prices for health plans next year because of continued uncertainty over whether the federal government will continue reimbursing insurers for crucial subsidies.
One set of rates would be used if there is not a clear sign that the Trump administration and Congress will fund the subsidies through 2018, which would reduce revenue to insurers.
The other set of rates would assume that the subsidies, known as cost-sharing reductions, are continued throughout 2018.
Covered California recently estimated that premiums for so-called silver plans would rise by 16.6 percent beyond the normal premium hike if the federal government ceased the CSRs. Allowing insurers to submit two sets of rates could make it easier for Covered California to retain insurers on the marketplace.
The CSRs reimburse insurers for subsidies that Obamacare legally requires them to offer to low-income customers who enroll in silver plans — the type of plan that covers an average of 70 percent of the health costs of enrollees.