Donald Trump to stop paying Obamacare subsidies for the poor
The White House made it known that the Trump Administration would end the Affordable Care Act’s cost-sharing reduction payments. The Act particularly helps people earning between 100 percent and 250 percent of the poverty level pay for the insurance and health care they get.
The dramatic move by the Trump administration raises questions about the law’s future. Health care experts have warned that not paying the subsidies could send the health insurance exchanges into turmoil.
The payments, which started under the Obama administration, had been continued by President Trump but on Thursday the White House said since there was no appropriation for it, “the Government cannot lawfully make the cost-sharing reduction payments.”
The White House said in a statement: “The bailout of insurance companies through these unlawful payments is yet another example of how the previous administration abused taxpayer dollars and skirted the law to prop up a broken system. Congress needs to repeal and replace the disastrous Obamacare law and provide real relief to the American people.”
The announcement is part of Trump’s aggressive push to dismantle aspects of Obama’s signature health law after several failed attempts by Congress to repeal it earlier this year. In a series of tweets Friday morning, Trump called on Democrats to reach out to him to “fix” the law, which he called a “broken mess.”
Trump tweeted: “The Democrats ObamaCare is imploding. Massive subsidy payments to their pet insurance companies has stopped. Dems should call me to fix!”