Once again furthering the rift between the Democrats and Republicans’ respective opinions of the Affordable Care Act, cost-sharing reductions return to question. In a hearing held in July, a representative of the IRS, commissioner John Koskinen, and Treasury Assistant Secretary for Tax Policy Mark Mazur testified regarding cost-sharing reductions.
The hearing, held by The House Ways and Means Oversight Subcommittee, aimed as an investigation to understand the ACA’s request and allocation of funds for their cost-sharing reductions program (CSR). The CSR program was implemented by the ACA as a means to alleviate some of the costs of health care, such as deductibles, out of pocket and co-payments. The CSR and premium tax credits (PTC) are two ways the ACA works toward bettering affordability for health care beyond what the Health Insurance Marketplace offers.
Both Koskinen and Mazur asserted that the IRS and the U.S. Department of Treasury work together in the administering of the CSR program. House Republicans took umbrage with where the money was coming from in 2012, citing a violation of Title 31 Sec. 1324 where refunds and tax credits should not be allocated toward CSR payments.
By 2013, a staggering $4 billion was requested for CSR, and while later withdrawn, the GOP suggested that the money was still taken from taxpayers through their refunds and credits. This investigation by House Republicans is perceived by many Democrats to be yet another way to take down the Affordable Care Act. The Democrats’ Committee on Energy & Commerce states that this makes another attempt after 60 previous ones by House Republicans in their move to repeal the ACA.