Morning Briefing
Summaries of health policy coverage from major news organizations
‘Why The Hell Would We’ Continue Insurer Subsidy Payments, Trump Reported To Ask Advisers
President Donald Trump has told advisers he wants to end payments of key Obamacare subsidies, a move that could send the health law's insurance markets into a tailspin, according to several sources familiar with the conversations. Many advisers oppose the move because they worry it would 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. (Dawsey, Haberkorn and Demko, 5/19)
President Trump is considering pulling the plug on key ObamaCare subsidies, Politico reported Friday, citing remarks the president has made to advisers...The Trump administration has reportedly told Congress that it will continue the subsidies through May, but it is not clear what will happen after that. If the payments do stop, it could cause premium costs to swell – a reality that would likely deal significant political damage to Trump and Republican lawmakers heading into the 2018 midterm elections. (Greenwood, 5/19)
A Monday court hearing offers the Trump administration its best opportunity to prevent significant increases in health care costs for about 7 million lower-income Americans who buy their plans on the Affordable Care Act exchanges. The administration's next move could prevent these insurance marketplaces from imploding as insurers are deciding which states, if any, to sell insurance in and at what price. (O'Donnell, 5/19)
The government reimburses insurance companies for offering cost-sharing reduction payments to help lower-income people afford certain health expenses. House Republicans brought a lawsuit against the Obama administration, arguing it improperly funded the subsidies without a specific appropriation from Congress. The administration argued there was a permanent appropriation in the ACA for the payments, but a district judge ruled with Republicans last year. (McIntire, 5/22)
If the White House drops its appeal in a lawsuit over ObamaCare cost-sharing reduction (CSR) payments to insurers, it could fast-track the end of the health law — something Republicans have made a major campaign promise for years. But administration officials are wary of ending the lawsuit, because they know that doing so would send the insurance markets into chaos. Insurers have warned of massive premium hikes or threatened to exit the ObamaCare exchanges completely if the payments don’t continue, and recent polls suggest Republicans would be blamed. (Weixel, 5/21)
