WASHINGTON, DC - The Subcommittee on Oversight and Investigations, chaired by Rep. Tim Murphy (R-PA), has scheduled a hearing for Friday, April 15, 2016, at 9:30 a.m. in room 2322 of the Rayburn House Office Building. The hearing is entitled, “Unlawful Reinsurance Payments: CMS Diverting $3.5 Billion from Taxpayers to Pay Insurance Companies."
Despite the clear language of the statute, the Centers for Medicare & Medicaid Services (CMS) is continuing to divert funds intended for the U.S. Treasury to insurance companies as reinsurance payments. Over the last two benefit years, CMS has illegally paid out $3.5 billion in reinsurance payments. At next week’s hearing, subcommittee members will have the opportunity to ask CMS Acting Administrator Andy Slavitt, the hearing’s sole witness, about the program.
In February, the Congressional Research Service issued a memorandum analyzing CMS’ decision to prioritize reinsurance payments to health insurers. The CRS memorandum concluded that, “Insofar as CMS’ interpretation allows the entire contribution of an issuer to be used only for reinsurance payments, such that no part of it is used for the U.S. Treasury contribution, then that would appear to be in conflict with the plain text of § 1341(b)(4)." The committee shared the memo with Health and Human Services Secretary Burwell at a February hearing on HHS’ budget. Last month, full committee Chairman Fred Upton (R-MI) and House Ways and Means Committee Chairman Kevin Brady (R-TX) sent a letter to Acting Administrator Slavitt regarding the program.
Now in its sixth year, Obamacare is still riddled with problems.
“There’s no debate over the legality of the reinsurance payments: the administration is not following the law," said Murphy. “These illegal payments are just another frantic attempt to prop up the president’s disastrous law. We’re not backing down from our oversight work to hold him the administration accountable for the Basic Health Program, the so-called Cost-Sharing Reduction Plan, the struggling state exchanges, and the crumbling CO-OPs. Anyway you look at it, it’s a costly mess."
The Majority Memorandum and witness testimony will be available here as they are posted.
See Also
* Unlawful Reinsurance Payments: CMS Diverting $3.5 Billion from Taxpayers to Pay Insurance Companies
