- On October 12, the Trump administration announced it would stop making cost-sharing reduction payments to insurers, because it lacked a constitutionally valid appropriation to do so—an action that restores Congress’ “power of the purse.”
- While some have proposed that Congress should appropriate funds for the payments, such action would effectively reward insurers’ prior risky behavior—assuming cost-sharing reductions would continue to be paid, even after a federal judge struck them down as unconstitutional—thereby perpetuating moral hazard.
- A better course of action is repealing the undermining regulations surrounding Obamacare, which necessitated the unconstitutional cost-sharing reduction payments to insurers in the first place.
Health Care
How Middlemen and Hidden Kickbacks Inflate Healthcare Costs
This is the time of year employers, local governments, employees, and individuals are looking at their healthcare renewals and expect double digit insurance premium increases for 2027. This pours fuel onto the fire of a healthcare system in crisis. Renewal notices often arrive at the last minute so CFOs and HR directors do not have...
September 23, 2026