The White House announced the major change to the health care market late Thursday night in a statement. The cost-sharing reduction payments, paid to insurers, were a component of Obamacare that made health insurance more affordable for qualified individuals and families. Ending the subsidy payments poses a major threat to the ACA -- it's likely to cause premiums to skyrocket for patients who purchase insurance on the exchanges. The payments amounted to an estimated $7 billion in 2017, according to the Congressional Budget Office.
"Based on guidance from the Department of Justice, the Department of Health and Human Services has concluded that there is no appropriation for cost-sharing reduction payments to insurance companies under Obamacare," the White House statement said. "In light of this analysis, the government cannot lawfully make the cost-sharing reduction payments."
"The United States House of Representatives sued the previous administration in federal court for making these payments without such an appropriation, and the court agreed that the payments were not lawful.Read more at CBS News