WASHINGTON — The White House on Wednesday pledged to continue payments critical to the success of Affordable Care Act exchanges, Politico reports. The pledge will come as a relief to insurers and providers after the administration’s earlier indication that it might withhold payments as a bargaining chip in this week’s budget negotiations.
The “cost-sharing subsidies,” which congressional Republicans have long contended the Department of Health and Human Services is not authorized to make, subsidize insurers who offer lower premiums on state exchanges.
A federal judge sided with Republicans in 2016, saying the executive branch could not continue the payments without an appropriation from Congress. The payments were allowed to continue while the Obama administration appealed the ruling.
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