Trump’s Threat to Take Away Subsidies Causes Uncertainty for Insurers
The deadline for insurers to file their rate increase for 2018 was extended by the Trump administration to September 5th, 2017, due to the threat by President Trump that he plans to discontinue important subsidies, such as the cost-sharing reduction payments. Through these subsidies, insurers are able to lower their deductibles for consumers, as well as co-pays and medical costs for those with low-income.
President Trump poses this threat as an attempt to persuade Democrats to come to an agreement with Republicans over the repeal and replace plan for the Affordable Care Act. The repeal and replace plan did not pass through the Senate, as there were a few Republicans who voted against the plan and sided with Democrats.
A federal judge ruled in 2016 that the president is able to stop payments to insurers, which will allow President Trump to cut off those subsidy payments to insurers. To accommodate the loss of payments, the increased rates from insurers will range between 15% to 20% higher than their current rates.
To combat the loss of subsidies, Congress is making a step to bring stability to the health insurance markets by supporting insurers with money. For Republicans, they see the subsidies as a bailout and do not support the subsidies.
Read the original article from The New York Times here.
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