On Oct. 12, the Trump administration declared it will soon stop making federal cost-sharing reduction payments to health insurance companies, ending an illegal Obama-era policy and returning the Constitution to its rightful place as the supreme law of the U.S.
Under the Affordable Care Act, health insurance companies are required to subsidize the insurance purchased by lower-income households with incomes less than 250 percent below the federal poverty level. These cost-sharing reduction subsidies are made in addition to the federal subsidies given to those buying health insurance plans with incomes at or below 400 percent of the federal poverty level, and they only apply to “Silver” plans bought on an Obamacare exchange.
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