Trump Ends $7 Billion of Federal Obamacare Subsidies

Democrats are all up in arms and accusing President Trump of deliberately wanting millions of power income Americans to suffer, as the President signed an executive order to end the $7 billion of federal subsidies used to reduce healthcare premiums for 6 million lower income Americans.

Several years ago, Republicans filed a lawsuit against the subsidies and won the suit, but the subsidies continued to be paid out. Trump and congressional Republicans claim that the subsidies are illegal in the way the law was written and the way it has been administrated. Congress is supposed to control the federal purse, but the way Democrats wrote the law, the executive branch has been regularly ruling on how the subsidies are being used, which is the grounds to deem it illegal prompting Trump’s executive order.

President Trump is throwing a bomb into the insurance marketplaces created under the Affordable Care Act, choosing to end critical payments to health insurers that help millions of lower-income Americans afford coverage. The decision coincides with an executive order on Thursday to allow alternative health plans that skirt the law’s requirements.

The White House confirmed late Thursday that it would halt federal payments for cost-sharing reductions, although a statement did not specify when. Another statement a short time later by top officials at the Health and Human Services Department said the cutoff would be immediate. The subsidies total about $7 billion this year.

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Trump has threatened for months to stop the payments, which go to insurers that are required by the law to help eligible consumers afford their deductibles and other out-of-pocket expenses. But he held off while other administration officials warned him such a move would cause an implosion of the ACA marketplaces that could be blamed on Republicans, according to two individuals briefed on the decision…

Trump’s executive order has received overwhelming support by key Republicans including Sen. Rand Paul (KY) and Speaker of the House Rand Paul. Trump’s executive orders to end some of Obamacare’s provisions were all made to eliminate provisions that are technically illegal and therefore he is just righting the wrongs committed by Democrats and the Obama administration.




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