White House administration ends cost-sharing reduction payments

In a move likely to have many reverberations, the White House administration decided to end cost-sharing reduction payments initiated under the previous administration, claiming inadequate congressional authorization to make those payments. Insurers had been widely predicting increases in premiums should these payments not continue. On one level, the legal issue is whether Congress has actually authorized these payments. One federal judge had ruled in favor of those opposing these payments, but that ruling was appealed and until recently, the payments had continued.

On another level, many believe the legal issue is not the impetus behind the decision. Rather, they might theorize that after multiple failed attempts to repeal The Affordable Care Act, this current White House administration is doing what remains in its power to derail the health insurance exchanges. The idea is that if the White House administration is able to cause premiums offered on the exchanges to rise even faster, then more healthy individuals would opt out, causing a death spiral. Those who take this view see this as a ruthless political move, adversely affecting the health of millions.