CCHF Urges President Trump to End Cost-Sharing Reduction Subsidies

For Immediate Release
August 14, 2017

CCHF Says Two Actions Can Limit Future Encroachment of ACA on Americans: Dropping Appeal of Lawsuit Regarding Unlawful CSR Subsidies and Refusing to Distribute CSRs to Health Plans

ST. PAUL, Minn.Citizens’ Council for Health Freedom (CCHF, has sent a letter to President Donald Trump about how a swift decision will determine the future of the Affordable Care Act (ACA) and its continuing encroachment on American patients and doctors.

CCHF shared with Trump that two matters are paramount to restoring health freedom for all Americans. CCHF president and co-founder Twila Brase noted these in an April op-ed for the Washington Times:

1.     Dropping the administration’s appeal of House vs. Price regarding unlawful cost-sharing reduction (CSR) subsidies

2.     Refusing to distribute unlawful CSR subsidies to health plans

“CSR subsidies, which President Obama funded despite Congress providing no appropriation, are propping up the ACA,” Brase wrote in the letter. “Without them, the Obamacare exchanges—the central superstructure of the law—will collapse. When something bad collapses, it is good. In this case, it would be very good for health freedom.”

Brase also noted that the prohibition of CSR payments will not cause health insurance companies to collapse, but rather the federal command-and-control of ACA infrastructure, creating a cascading effect toward freedom and the reclaiming of state’s rights.

“The ACA has harmed Americans,” Brase continued. “The ACA has diminished the greatness of our country and the excellence of medicine. It has compromised the integrity of liberty, restricted the financial resources of millions, and interfered with the lives and private choices of individual patients and the doctors who care for them.”

Brase reminded Trump that on July 29 he stated: “If a new Health Care Bill is not approved quickly, BAILOUTS for Insurance Companies and BAILOUTS for Members of Congress will end very soon!”

“We encourage you to make it so,” stated the CCHF letter. “You have the power to begin the restoration of health freedomin America by shutting down the $7 to $10 billion ACA bailouts the insurers want to wrest from taxpayers. The ACA was written in such a way that it cannot stand alone on premiums paid by individuals for coverage. New taxes, new fees, new penalties and skyrocketing premiums—and the loss of individual freedom—were established in law to create a national program of wage redistribution through federal subsidies paid directly to managed-care health plans, which were given the entire market.”

Brase also provided these examples:

  • Advance premium tax credits (premium subsidies)
  • Cost-sharing reduction subsidies (deductible, copayment and co-insurance subsidies)
  • Risk corridors (re-distribution of insurance premiums through the federal government)
  • Reinsurance (~$25 billion pool of money for redistribution to insurers offering exchange plans)

“Instead of making the CSR payments, we encourage you to push for tax deductibility for all for health insurance,” Brase advised Trump. “This will provide true tax equity, allow people to purchase their own insurance at an affordable price—and significantly reduce the problem of Americans getting stuck with uninsurable (pre-existing) conditions when they age out of family policies or lose employer-based policies. This problem needs a long-term, highly American, limited-government solution: personal ownership of health insurance.”

Brase ended the letter with a step-by-step suggestion:

“Therefore, our request is simple,” she concluded. “Drop the appeal of House vs. Price and refuse to fund the unlawful CSR subsidies. Then tell states they should prepare to return to pre-Obamacare, state-based decision-making. To speed things along, consider an Executive Order authorizing states to use 1,332 waivers to ignore the unconstitutional ACA §1302(e) prohibition on selling catastrophic coverage. This one EO will help states exercise the 10th Amendment rights that were taken from them by the ACA and restore the affordable coverage taken away from millions of Americans by the ACA.”

These actions by the president and Health and Human Services Secretary Tom Price, Brase said, will restore health freedom—with or without repeal of the Affordable Care Act—and protect it long into the future. The letter included enclosures found on the CCHF website: “The Obamacare Machine” diagram and a one-pager showing the three parts of the ACA: “Why Affordable Care Act Should be Repealed.”

Read the entire CCHF letter to President Trump here.

For more information about CCHF, visit, its Facebook page or its Twitter feed @CCHFreedom. Also view the media page for CCHF here. For more about CCHF’s initiative The Wedge of Health Freedom, visit www.JointheWedge.comThe Wedge Facebook page or follow The Wedge on Twitter @wedgeoffreedom.

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