Some Obamacare enrollees may pay an extra $1,040 if the House's lawsuit against Obamacare succeeds in stripping funding for the law's cost-sharing reductions, a new analysis finds.
A brief released Wednesday by the center-left think tank Urban Institute concluded that an abrupt halt of payments to insurers for covering low-income enrollees could lead them to pull out of the marketplace or mean enrollees paying higher premiums.
The lawsuit argues the funds for the cost-sharing reductions were never fully appropriated by Congress. A federal judge ruled last fall that the lawsuit could move forward, and the next step is a ruling on the merits of the case.More from the Washington ExaminerCruz hopes pro-Trump establishment disdain is his gain
If the funding was taken away, it could have lasting ramifications for Obamacare, as the law requires the cost for health insurance be reduced for enrollees with incomes below 250 percent of the federal poverty level, Urban said. That means insurers would have to pick up the tab.
The nonpartisan Congressional Budget Office estimated that the government will pay $13 billion in cost-sharing reductions in 2020. The cost-sharing reductions are separate from the income-based tax credits given to enrollees to help pay down the cost of insurance.