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Friday, 13 October 2017 00:02

Trump to end cost-sharing subsidies to insurance companies

Written by  USA Today

President Trump plans to end payments to insurers that have helped low-income families pay for health insurance under the Affordable Care Act, the White House announced late Thursday.

In a statement, White House Press Secretary Sarah Huckabee Sanders said the decision was "based on guidance from the Department of Justice," adding that the government "cannot lawfully make the cost-sharing reduction payments.

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"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," Sanders said in a statement. "Congress needs to repeal and replace the disastrous Obamacare law and provide real relief to the American people.”

Word of Trump’s plan came on a day when the president had signed an executive order directing government agencies to design insurance plans that would offer lower premiums outside the requirements of former president Barack Obama’s signature achievement.

Analysis: How Trump is unraveling Obamacare piece by piece

Related: Trump's health insurance order pushes association plans to drive down costs — for some

Trump's decision is likely to trigger a lawsuit from state attorneys general, who contend the subsidies to insurers are fully authorized by federal law, and the president’s position is reckless.

Read more at USA Today

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