National Subsidies to Insurers to Stop
Written by Editor   
Monday, October 16, 2017 07:08 AM

Leadership at the Department of Health and Human Services (HHS) issued a statement explaining that  subsidy payments to insurers intended to help defray the expenses of low-income patients  would be “discontinued immediately" because of a legal opinion from the Attorney General.  

“After a thorough legal review by HHS, Treasury, OMB [the Office of Management and Budget], and an opinion from the Attorney General, we believe that the last Administration overstepped the legal boundaries drawn by our Constitution. Congress has not appropriated money for CSRs, and we will discontinue these payments immediately,” noted a statement from HHS.

"Based on guidance from the Department of Justice, the Department of Health and Human Services has concluded that there is no appropriation for cost-sharing reduction payments to insurance companies under Obamacare. In light of this analysis, the Government cannot lawfully make the cost-sharing reduction payments,” said the White House press secretary.

In all, these cost-sharing subsidies amounted to about $7 billion in fiscal year 2017.

Political and personal opinions over the move abound.