The Trump administration announced Thursday that billions of dollars in payments to health insurers will end. President Donald Trump has been making the payments each month to subsidize coverage under Obamacare since he took office in January.
Administration officials have concluded that the payments to health insurance companies that subsidize health care for low-income Americans are unlawful.
How much money are we talking here?
A lot. Under the Affordable Care Act, insurance companies were forced to lower their prices and offer additional plans with the promise that the government would cover the bill. These subsidies are estimated to cost $130 billion by 2026.
What are people saying?
Sen. Chuck Schumer and Rep. Nancy Pelosi have called the move “a spiteful act of vast, pointless sabotage leveled at working families and the middle class in every corner of America” in a joint statement.
The truth is unpleasant but less extreme. Tl;dr – health insurers say the move will disrupt insurance markets and raise the cost of premiums. More insurers may pull out of the Obamacare exchange.
Obamacare isn’t working – that’s clear when 45 counties are on track to have no insurer in the ACA marketplace next year. But the bottom line with Obamacare insurance subsidies is that the taxpayer-funded payout has been unlawful for all these years.
In 2016, a federal judge ruled that Obamacare subsidies were unconstitutional because the administration never obtained an appropriation from Congress.
“A federal judge has already said this is stolen money,” Glenn said.