President Trump is considering a move that could devastate Obamacare and force lawmakers to take action to repeal the law and pass health care reform.
According to Politico, the president wants to end payments of “key Obamacare subsidies,” an action that would cause Obamacare to fall apart. Trump reportedly wants to force congressional Democrats to the negotiating table, but this sort of bold action is unpopular with some in the White House.
Many advisers oppose the move because they worry it will backfire politically if people lose their insurance or see huge premium spikes and blame the White House, the sources said. Trump has said that the bold move could force Congressional Democrats to the table to negotiate an Obamacare replacement.
Lawyers and other administration officials are trying to thread the needle.
These payments to insurance companies are worth an estimated $7 billion for this year alone. The government pays insurance companies to subsidize the cost of insuring low-income individuals. Without those subsidies, the insurance plans with regulations mandated by the government would become too expensive to offer, and insurers would be forced to exit Obamacare’s exchanges at a quicker pace.
Obamacare’s regulations and mandates caused the price of health insurance to skyrocket, making these subsidies a cornerstone of the law’s structure. The true cost of Obamacare has been hidden from the American people, like an open sore under a Band-Aid. Ending these subsidies would rip that Band-Aid off.
According to Politico, no formal decision has been made yet. Will the Washington, D.C., political class talk the president down to save their skins come election season? We’ll find out soon.