Well, all along he’s said that when the whole system collapses, Congress will have to get serious about it.

The whole system just collapsed!

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Based on guidance from the Department of Justice, the Department of Health and Human Services has concluded that there is no appropriation for cost-sharing reduction payments to insurance companies under Obamacare.

It’s illegal to spend money that hasn’t been appropriated so . . . DONE . . .

In other news, the Democrats aren’t happy. Oddly, the Republicans won’t be happy either I suspect.

This is really big stuff. This slush fund of money is what kept the entire system more or less afloat. We’re expecting a White House statement shortly and I’ll update it once we have more information.

UPDATE: 12:30 AM EDT – What is the Cost Sharing Reduction?

Just to be clear on what this is, there is a Obamacare subsidy that lets people buy Obamacare insurance at a lower cost based on your income and your age. This isn’t what we’re talking about here.

A CSR (Cost Sharing Reductions) is:

A discount that lowers the amount you have to pay for deductibles, copayments, and coinsurance. In the Health Insurance Marketplace, cost-sharing reductions are often called “extra savings.” If you qualify, you must enroll in a plan in the Silver category to get the extra savings.

  • When you fill out a Marketplace application, you’ll find out if you qualify for premium tax credits and extra savings. You can use a premium tax credit for a plan in any metal category. But if you qualify for extra savings too, you’ll get those savings only if you pick a Silver plan.
  • If you qualify for cost-sharing reductions, you also have a lower out-of-pocket maximum — the total amount you’d have to pay for covered medical services per year. When you reach your out-of-pocket maximum, your insurance plan covers 100% of all covered services.
  • If you’re a member of a federally recognized tribe or an Alaska Native Claims Settlement Act (ANCSA) Corporation shareholder, you may qualify for additional cost-sharing reductions.

The intent here is that if you’re really poor, you can buy a super duper plan for not much money. <SARC>Of course, you have to have the money in the first place but if you do, you can go get all sorts of wonderful healthcare! </SARC>

Without this slush fund, the insurers will simply hemorrhage money because their possible downside risk is unlimited.

UPDATE 1:00 AM EDT – Attorney Generals in Liberal States to Sue to Keep the Subsidies Going

 
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