Obamacare Cost-Sharing Reduction Payments Will Be Made in August

An Obamacare logo is shown on the door of the UniVista Insurance agency in Miami, Florida / Getty Images


The Affordable Care Act's cost-sharing reduction payments will continue to be funded through August despite claims that they were unconstitutional, CNBC reported.

On Wednesday, a White House spokesman announced that the federal government will continue to make the payments to insurers in August, but did not say whether they would continue to be funded after that.

The payments were put into question when two House committees investigated the payments and said they were unconstitutional because they were made without an appropriation from Congress.

On Tuesday, the Congressional Budget Office released a report outlining what would happen to premiums and insurer participation if the payments were not made to insurers. The report noted that premiums would increase by 20 percent next year and some health insurers would likely withdraw from the exchanges.

Ali Meyer

Ali Meyer   Email Ali | Full Bio | RSS
Ali Meyer is a staff writer with the Washington Free Beacon covering economic issues that expose government waste, fraud, and abuse. Prior to the Free Beacon, she was a multimedia reporter with CNSNews.com where her work appeared on outlets such as Drudge Report and Fox News. She also interned with the Heritage Foundation and Pacific Research Institute. Her Twitter handle is @DJAliMeyer, and her email address is meyer@freebeacon.com.

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