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Trump Announces No More Health Insurance Subsidies For Low-Income Families

Donald Trump has said for months that the Affordable Care Act is “imploding” but the fact of the matter is Trump is doing everything he can to sabotage the legislation.

The White House has now announced that the federal government will stop subsidy payments to insurance companies that help low-income Americans afford health insurance.

This comes just hours after Trump’s executive order allowing the sale of stripped-down, loosely regulated “junk” insurance policies.

From the New York Times:

The twin hits to the Affordable Care Act could unravel President Barack Obama’s signature domestic achievement, sending insurance premiums soaring and insurance companies fleeing from the health law’s online marketplaces. After Republicans failed to repeal the health law in Congress, Mr. Trump appears determined to dismantle it on his own.

Without the subsidies, insurance markets could quickly unravel. Insurers have said they will need much higher premiums and may pull out of the insurance exchanges created under the Affordable Care Act if the subsidies were cut off. Known as cost-sharing reduction payments, the subsidies were expected to total $9 billion in the coming year and nearly $100 billion in the coming decade.

Lawmakers from both parties have urged the president to continue the payments.

New York Attorney General Eric T. Schneiderman, California Attorney General Xavier Becerra and 16 other attorneys general have announced they will stand up against the action by Trump to cut off subsidies for Obamacare. “Our coalition of states stands ready to sue if President Trump cuts them off.”