On Thursday, judges from the U.S. Court of Appeals for the Federal Circuit raised their concerns that insurers were overly compensated from the subsidies received from the government is giving them, which were given due to the losses from cost-sharing reduction payments. In October 2017, the cost-sharing reduction payments were cut from insurers, and was originally mandated from the Affordable Care Act. The total paid to these insurers who participated in this program amounted to $1.6 billion.
The judges were concerned that this high payment to these insurers were too much, and that the insurers were already receiving subsidies once they had increased their premiums. The judges questioned why these insurers needed the additional amount when they were already given an additional amount via the subsidies.
Lawyers defending the insurers stated that the cost-sharing payments and the subsidies from the premiums are separate points and said there was no support to find a relationship between the two payments.
Read the original article from Modern Healthcare here.