Healthcare

Trump Cuts Off Obamacare’s Cost-Sharing Subsidies

JM Ashby
Written by JM Ashby

After threatening to do so for months, Trump has finally cut off Obamacare's cost-sharing subsidies for insurers that keep premiums stable for all patients regardless of which insurer they use.

The Trump regime made the announcement very late last night while millions of people were watching playoff baseball, and I don't think that's a coincidence.

Trump has made the payments, guaranteed to insurers under Obamacare to help lower out-of-pocket medical expenses for low-income consumers, each month since taking office in January. But he has repeatedly threatened to cut them off and disparaged them as a “bailout” for insurance companies. [...]

Shares of hospitals and health insurers fell in premarket trading on Friday after Trump’s decision. Shares of Anthem Inc, Molina Healthcare Inc, Cigna Corp and Centene Corp, which are all offering plans on Obamacare markets for 2018, were all lower.

To be clear, these subsidies are paid to insurers who cover a disproportionate number of low-income sick people. The subsidies are intended to prevent a scenario in which one insurer is forced to charge significantly more money than another insurer because they cover more sick people.

The Congressional Budget Office (CBO) has estimated that cutting off the subsidies will result in 1 million people losing their coverage and those who can still afford coverage will see their premiums rise by 20 percent.

The CBO also estimates that cutting off the subsidies will cost the federal government nearly $200 billion because individual premium subsidies will increase to match the 20 percent higher individual premium rates.

In short, Trump has just made insurance more expensive for consumers and the government for no good reason. He did this out of spite.

States led by California are already lining up to challenge Trump's decision in court.

  • Badgerite

    These are the ‘great’ business skills that he brought to the casino business in Atlantic City.
    This, of course, is also why the craven GOP and Ryan sold out the country to Russian mob money and Russian intelligence services.
    To get a flat out sociopath in office who will do their dirty work for them of screwing over Americans who are not ultra rich
    (see 1%). They have lost any kind of credibility when claiming to care about life. I have thought for some time that it is a ruse to cover other aims, like going back to blaming women for engaging in “risky behavior” if they should get pregnant.
    Birth control would solve that problem of course, which is why the GOP, apparently, does not want women to have access to birth control via health insurance, or access to clinics that provide neo natal care, or affordable insurance to cover the medical expenses of a child born with a chronic health condition. If they don’t care about living breathing people, they don’t care about life and the right to life movement is just a way to wave a bloody shirt in politics to cover other things that motivate them.

  • waspuppet

    “That n!%%@r Obama made a joke about me at the WHCD so I’m going to destroy everything he did” is the only consistent political principle Donald Trump has. And there is no evidence from his 71 years of life that he has the emotional or intellectual maturity not to destroy anything or cause the death of anyone in the pursuit of this.

  • Dread_Pirate_Mathius

    Friends, I have acquired* the top secret Republican strategy plan:

    Step 1: Sabatage [thing].
    Step 2: [Thing] fails.
    Step 3: Blame Democrats.
    Step 4: Use as evidence that [thing] cannot work.

    *Many Bothans died to bring us this information.

    • Wildson

      :=)))))))))))

      Love the Star Wars reference…