On May 12, 2016, a federal judge ruled that the Obama administration could no longer pay for the Affordable Care Act’s cost-sharing reductions for low- and moderate income families, because Congress had never expressly appropriated funds for that purpose. The ruling in House v. Burwell was stayed and therefore will not take effect immediately. While the case will be appealed, it could put coverage for millions of Americans in jeopardy.
The #ACA's cost-sharing reductions substantially reduce health care costs for low- and moderate-income families with marketplace plans 1/8
— Sara Collins (@SaraCollins_) May 12, 2016
People who use the most #healthcare see the largest savings from this cost-sharing benefit;i .e., the sickest patients. 2/8
— Sara Collins (@SaraCollins_) May 12, 2016
Insurers lower deductibles and copays for people who qualify for cost-sharing reductions, and are reimbursed by the federal government. 3/8
— Sara Collins (@SaraCollins_) May 12, 2016
Today, a judge ruled against the #ACA stating that the payments made to health insurers for these cost reductions were improperly funded 4/8
— Sara Collins (@SaraCollins_) May 12, 2016
The Obama Administration will appeal this decision. 5/8
— Sara Collins (@SaraCollins_) May 12, 2016
This ruling could eventually increase health care costs for as many as 7 million people with low and moderate incomes. 6/8
— Sara Collins (@SaraCollins_) May 12, 2016
This may lead many people to drop their coverage – likely the healthiest people enrolled in the marketplaces. 7/8
— Sara Collins (@SaraCollins_) May 12, 2016
Ultimately, this could destabilize the marketplace resulting in higher premiums for everyone. 8/8. https://t.co/JoObAHWBXu
— Sara Collins (@SaraCollins_) May 12, 2016
For a deeper look at how the Affordable Care Act's cost-sharing reductions affect consumers' out-of-pocket costs, read the report cited below.
House win on cost-sharing subsidies lawsuit threatens coverage for 7 million people: https://t.co/10KGtGsY2G
— Commonwealth Fund (@commonwealthfnd) May 12, 2016
For more on the case, who it affects, and how, see the two blog posts below.
Tim Jost on House v. Burwell case in @NEJM https://t.co/Rx2QZRbvtI
— Sara Collins (@SaraCollins_) May 12, 2016
Flashback: Inside federal lawsuit over cost-sharing provisions in Obamacare https://t.co/B9ijQQhJGx by @DavidBlumenthal and @SaraCollins_ on
— WSJ Think Tank (@WSJThinkTank) May 12, 2016
