Federal Judge Approves Trump Administration’s Decision to End Subsidies to Insurance Companies
Earlier this month, The Trump Administration announced that federal cost-sharing reduction (CSR) subsidies that are paid out to insurance companies. The CSRs are intended to benefit low-income Americans by reducing the costs for health insurance. These insurance companies are required under the Affordable Care Act to lower payments, such as co-payments, coinsurance and deductibles for low income Americans that are 250% of the federal poverty level.
President Trump has been against these subsidies, referring to the CSRs as bailouts for insurers. On Wednesday, U.S. District Judge Vince Chhabria denied a request from state attorneys to halt the Trump Administration from taking away the subsidies to insurance companies. The judge ruled that the subsidies were counterproductive.
By stopping the CSRs, those under Obamacare may see a rise in premiums for their healthcare coverage, specifically the enrollees whose income is to high to qualify for tax credits.
The state attorneys’ stance is that the Trump Administration violated federal law by ending the CSRs, but the federal government stated that since Congress never initially allocated money for CSRs, then the Constitution prohibits the executive branch from spending money on it.
Read the original article from Modern Healthcare here.