- 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
Rigging Drug Prices
Americans are deeply concerned about the cost of prescription drugs—and for good reason. Over the last decade, drug prices have outpaced inflation, and Americans are paying more than two and a half times what other wealthy nations pay for the same drugs. Most people believe high prices are simply the result of expensive research and development, which may hold for some...
May 1, 2026