You are here:HomeIssuesHealth Care Reform2017Key Republican Demands Insurance Subsidies to Calm Markets

Key Republican Demands Insurance Subsidies to Calm Markets

U.S. Rep. Kevin Brady (R-Texas), who is the chairman of the House Ways and Means Committee, said on June 8 that Congress should immediately provide money for subsidy payments to health insurance companies...
June 14, 2017

Rep. Kevin Brady

U.S. Rep. Kevin Brady (R-Texas), who is the chairman of the House Ways and Means Committee, said on June 8 that Congress should immediately provide money for subsidy payments to health insurance companies.

Speaking at a budget hearing, Brady said the payments were needed to keep the insurance market stable and help lower premiums for Americans who must rely on Affordable Care Act plans.

“We should act within our constitutional authority now to temporarily and legally fund cost-sharing reduction payments as we move away from Obamacare,” Brady said. “Insurers have made clear the lack of certainty is causing 2018 proposed premiums to rise significantly.”

His statement comes a day after Senate Republicans said they were nearing agreement around a bill that would continue the cost-sharing subsidies, on which the federal government spends $7 billion annually. The money goes directly to insurers, which are required to provide discounts to low-income people regardless of whether the companies are reimbursed by the government. The Trump administration has sent mixed signals on the issue, as the president seeks leverage to win legislation to repeal the Affordable Care Act.

Filed under: