[October 13, 2017] |
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Citizens Against Government Waste Supports Ending Unlawful Health Insurance Bailouts
Citizens Against Government Waste (CAGW) President Tom Schatz issued the
following statement after the Department of Health and Human Services
(HHS) ended
cost-sharing reduction (CSR (News - Alert)) payments to insurance companies under the
Affordable Care Act (Obamacare):
"The CSR payments were an unlawful bailout for insurance companies.
Taxpayers should welcome the Department of Health and Human Service's
decision to follow the law and protect their interests. This decision
puts the onus back on Congress to make good on its promise to repeal and
replace Obamacare."
Background:
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CSR payments are direct taxpayer-funded subsidies to insurance
companies.
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Obamacare did not provide for any funding for CSR payments and
Congress never appropriated any funds for them.
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The Obama administration began CSR payments illegally in 2014.
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The House of Representatives filed a lawsuit in November 2014 charging
that CSR subsidies are unconstitutional.
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On May 12, 2016, the D.C. District Court ruled
in the House's favor and ordered an end to the payments, but the
decision was stayed, and the payments were continued.
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HHS based its decision on a letter from Attorney General Jeff
Sessions, who concluded that the payments cannot be made without an
appropriation, which Congress has not provided.
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Under current law, insurers are still required to provide low-cost
plans and ensure that individuals who purchase them are not saddled
with additional costs.
Citizens
Against Government Waste is the nation's largest nonpartisan,
nonprofit organization dedicated to eliminating waste, fraud, abuse, and
mismanagement in government.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171013005570/en/
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