It was rumored that the Trump Administration would end the cost-sharing reduction payments to health insurers after Congress failed to pass legislation repealing and replacing the Affordable Care Act. Now, a White House spokesman has confirmed that the payments will continue in August.
These payments are made to insurance companies to subsidize lower costs for certain people who purchase health insurance. The Congressional Budget Office found that ending the payments without further reforms could lead to increased premiums for some plans and add to the federal deficit as individual plans keep becoming more expensive and individuals receive higher subsidies.
Republican Study Committee Chair Rep. Mark Walker (R-NC) released a statement saying that, “We cannot dig our hands into a hole $20 trillion deep to bail out insurance companies. Even worse, we will be adding insult to injury by masking the failures of Obamacare at the expense of hardworking taxpayers.” He called on the Senate to continue working on a plan to repeal and replace Obamacare.
Fiscal conservatives should be wary of continuing to prop up the broken health care law. Republicans have been promising to repeal the law for years, as soon as they achieved united government — and now, seem to be continuing the status quo. Taxpayers should watch closely in the coming weeks, and Congress should look for real solutions, not more of the same.