Government Advocacy

October 16, 2017: MGMA letter to Congressional leadership on CSR payments and marketplace stabilization

Advocacy Letter

Federal Insurance Markets

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October 16, 2017 

The Honorable Mitch McConnell            The Honorable Paul D. Ryan 
Majority Leader                                        Speaker of the House of Representatives 
United States Senate                                 United States House of Representatives 
Washington, D.C. 20510                          Washington, D.C. 20515 

The Honorable Charles E. Schumer        The Honorable Nancy Pelosi 
Democratic Leader                                   Democratic Leader 
United States Senate                                 United States House of Representatives 
Washington, D.C. 20510                          Washington, D.C. 20515 


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

In light of the Administration’s decision to end cost-sharing reduction (CSR) payments, the Medical Group Management Association (MGMA) urges Congress to step in and pass legislation to stabilize the exchange marketplaces. We have concerns that abruptly ending CSR payments runs the risk of destabilizing the insurance market and restricting patient access to critical medical services.

MGMA represents more than 40,000 medical practice administrators, executives, and leaders in 12,500 organizations of all sizes, types, structures and specialties that collectively deliver nearly half of all healthcare in the United States. 

CSR payments typically assist lower income Americans with out of pocket medical expenses including deductibles and co-payments in an effort to keep coverage more affordable. While we agree that the current trend of rising premiums is a concern that warrants an important conversation about new strategies to improve our health system and keep coverage affordable for all Americans, we are concerned that ending CSR payments outside a larger reform plan risks destabilizing the market. Market uncertainty can drive insurers to raise premiums and restrict plan options, which, according to the non-partisan Congressional Budget Office (CBO), will increase the number of uninsured Americans and add to the federal budget deficit. 

  Read the full letter
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