Cost-Sharing Reductions

Americans with low or moderate incomes can get their out-of-pocket health care expenses reduced if they have purchased a silver plan in the Affordable Care Act’s (ACA) health insurance marketplaces. The federal government reimburses insurers for providing the subsidies. However, in 2014, Republicans in the U.S. House of Representatives sued the Obama administration, alleging that the U.S. Department of Health and Human Services’ payments to insurers were unlawful because Congress had not appropriated funds to pay for them. And on October 13, 2017, the Trump administration announced that it will stop making the cost-sharing reduction payments to insurers. 

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