Donald Trump has been accused of a “spiteful act of vast, pointless sabotage” by cutting off subsidies to health insurance companies for low-income patients.
The Democrats ObamaCare is imploding. Massive subsidy payments to their pet insurance companies has stopped. Dems should call me to fix!
— Donald J. Trump (@realDonaldTrump) October 13, 2017
The move – one of two made yesterday in an effort to fatally undermine Obamacare – has sparked threats of legal action and concerns of chaos in insurance markets.
President Trump’s health care executive order may seem a little complicated so let me break it down: It’s sabotage.
— Tim Kaine (@timkaine) October 12, 2017
His decision is likely to please those among his political base who detest the Obamacare system, which many Republicans have attacked for years as an unneeded government intrusion in Americans’ healthcare.
But the move will likely have severe consequences – a study by the widely-respected Kaiser Family Foundation found such an act would force insurance companies to either raise premiums to cover the shortfall or exit the market altogether.
This would mean that on top of the lower-income patients, those on middle-incomes may not be able to afford healthcare either.
The same study also found the measure won’t even save the Government money in the long-term, saying:
…the increased cost to the federal government of higher premium tax credits would actually be 23% more than the savings from eliminating cost-sharing reduction payments. For fiscal year 2018, that would result in a net increase in federal costs of $2.3 billion [£1.7 billion]. Extrapolating to the 10-year budget window (2018-2027) using CBO’s projection of CSR payments, the federal government would end up spending $31 billion [£23.3 billion] more if the payments end.
Trump yesterday also signed an Executive Order to make …read more
Source:: The Huffington Post – UK politics