Upton, Brady release report on findings of investigation into unlawful funding of Obamacare Cost Sharing Reduction program

U.S. Reps. Fred Upton (R-MI) and Kevin Brady (R-TX) released a report on Thursday that found that Obama administration officials circumvented appropriations laws in funding the Affordable Care Act’s (ACA) Cost Sharing Reduction (CSR) program.

The report was the culmination of an 18-month investigation led by Upton, the chairman of the House Energy and Commerce Committee, and Brady, the chairman of the House Ways and Means Committee, into the ACA’s CSR program.

The Treasury Department concluded in 2012 that permanent Treasury appropriations for tax credits could not be used to make CSR payments. By July 2013, however, the Office of Management and Budget withdrew an annual appropriation request to the Senate Appropriations Committee for the CSR program and provided a memorandum for the legal analysis justifying the CSR program through the premium tax credit account.

“For nearly a year-and-a-half, we have sought the most basic facts about the source of funding for this program,” Upton and Brady said in a joint statement. “Along the way, we’ve been met by repeated roadblocks from the administration, and the refusal to share even basic information with our committees. Additionally, during the course of our investigation, we’ve had individuals testify who referenced specific documents about the program. To this day, we continue to be denied access to those very documents.”

Upton and Brady added that “despite this administration’s unprecedented obstruction,” the committees had uncovered information about the administration’s decision to “unconstitutionally fund” the CSR program without a congressional appropriation.

Following the report’s release, hearings were scheduled for both committees to question administration officials about the funding structure for the CSR program. Eight officials are scheduled to testify, including IRS Commissioner John Koskinen.