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News Release: Pa. Hospital Community Troubled by Cancellation of Cost-Sharing Reduction Payments

October 13, 2017

Yesterday, the Trump Administration announced that it would not fulfil cost-sharing reduction payments, a provision of the Affordable Care Act designed to help reduce health care costs for lower-income Americans.

Andy Carter, president and CEO of The Hospital and Healthsystem Association of Pennsylvania (HAP), released the following statement:

“Pennsylvania’s hospital community is deeply disappointed by the President’s executive action to end the federal cost-sharing subsidies that help lower-income individuals secure health care coverage.

”More than half of Pennsylvania’s insurance marketplace enrollees rely on these subsidies to gain access to affordable, reliable health care coverage. Without cost-sharing subsidies, more than half a million Pennsylvanians could see their insurance premiums spike by more than 20 percent during 2018, potentially pricing many consumers out of the marketplace.

“Under the Affordable Care Act, Pennsylvania has made great strides to lower the state’s uninsured population and improve the overall health of its residents. While we are concerned by this action, Pennsylvania’s hospital community remains committed to working with policymakers to safeguard access to high-quality health care coverage. We implore Congress to take swift, bipartisan action to protect consumers from these steep premium increases and help support a robust and competitive insurance market.”

HAP led a coalition of 27 health care provider and advocacy organizations that sent a joint letter to Pennsylvania’s Congressional delegation, outlining the need to continue funding for cost-sharing reduction payments, and other programs that support care for vulnerable individuals.

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