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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
August 16, 2017

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.

Published under: Obamacare