Market Impact of ACA Navigator Funding Cut Is Uncertain
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Feb 21, 2025
CMS on Feb. 14 slashed the budget for the Affordable Care Act Navigator program by 90%, citing wasteful spending and minimal impact in signing up people for exchange plans. Kaye Pestaina, director of KFF’s Program on Patient and Consumer Protections, tells AIS Health that the cuts could have a significant impact on consumers because Navigators are impartial and play a major role in informing people of their coverage options, particularly in rural and underserved areas. However, it remains unclear what the impact on ACA exchange enrollment will be.
The agency announced that it will reduce funding for the program to $10 million starting for plan year 2026. That means the change will go into effect later this year when people consider their ACA exchange coverage options during the open enrollment period that begins on Nov. 1. CMS said the change will save a total of $360 million over a four-year period and apply for the 30 states and Washington, D.C., that use the federal HealthCare.gov platform.
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