NCPA - National Center for Policy Analysis

DC Federal District Court: Obamacare's Cost-Sharing Subsidies Illegal

May 18, 2016

A D.C. Federal District Court has ruled the cost sharing reductions in Obamacare are unconstitutional because they were never appropriated by Congress, writes NCPA Senior Fellow Devon Herrick in Townhall.  To put this into perspective, the average deductible for the standard silver plan is just over $3,000, but would drop to around $700 for someone earning 150 percent of poverty and just over $200 for someone at the poverty level.  Suffice it to say, a $3,000 deductible for someone at 100 percent to 250 percent of poverty makes coverage basically worthless to all but the sickest patients.  The loss of cost sharing reductions will likely sink Obamacare if the ruling is upheld.


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