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WALKER: CSR Payments are Bail Outs for Insurance Companies; Senate Keep Working Until They Pass Obamacare Repeal And Replace Bill

August 16, 2017
Press Release
"We cannot dig our hands into a hole $20 trillion deep to bail out insurance companies."

WASHINGTON, D.C. – U.S. Representative Mark Walker (R-N.C.) today issued the following statement in response to the administration's announcement that they plan to continue issuing unconstitutional payments under the Obamacare cost-sharing reduction (CSR) program:

"We cannot dig our hands into a hole $20 trillion deep to bail out insurance companies. Even worse, we will be adding insult to injury by masking the failures of Obamacare at the expense of hardworking taxpayers. The people of North Carolina are already paying enough because of Obamacare’s pitfalls. Instead of the executive branch issuing unconstitutional payments to bail out insurance companies, the Senate should continue working until they have passed a bill to repeal and replace Obamacare. Their constituents are tired of their inability to fulfill their promise."

The CSR payments are illegal because Congress, who holds the constitutional power of the purse, never authorized the payments. They are the center of a 2014 lawsuit where House Republicans sued the Obama administration on the constitutionality of the payments directly to insurance companies, practically serving as a bail out. A Federal District Court judge agreed and ordered the payments had to be halted.

According to The New York Times

"Congress never provided explicit authority for the spending, she ruled. 'Such an appropriation cannot be inferred,' the judge said in her opinion. She blocked further spending under the program but said that order would be suspended pending an appeal by the Obama administration."

In April, the Trump administration announced it would temporarily continue CSR payments. Following that decision Walker said that "The Constitution provides that ‘No money may be drawn from the Treasury, but in consequence of Appropriations made by Law.’  

"Congress has made no appropriation for Obamacare cost sharing reduction payments,"Walker added. "Therefore, we believe making these payments without congressional approval is both clearly illegal and unconstitutional, as the district court held in House v. Price."