Trump administration stops subsidy payments to insurance companies covered under ObamaCare

By: Natalie Dreier, Cox Media Group National Content Desk

Updated:

WASHINGTON - President Donald Trump’s administration has served another blow to The Affordable Care Act, also known as ObamaCare.

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This morning, the administration informed the courts that the Department of Health and Human Services has stopped cost-sharing payments for ObamaCare subsidies effective immediately. The reason is that there was no permanent appropriation set to make the payments. The next is due on Oct. 18 and will not happen, Reuters reported.

 

The White House said Thursday that the government can’t legally pay the money to health insurance companies, Reuters reported.

 

Sen. Chuck Schumer and Rep. Nancy Pelosi said that Trump, “apparently decided to punish the American people for his inability to improve our health care system,” The New York Times reported.

Democratic lawmakers said that Trump pushed American health care premiums higher with the decision.

 

 

 

Trump lashed out on Twitter Friday morning to respond to Democrats’ claims.

 

 

Fox News reported that the move could bring lawsuits from state attorneys general who say that the subsidies are authorized by federal law.

Thursday, Trump also signed an executive order that he said will make lower-premium plans more widely available. But officials with the administration say the plans to do so may not come in time for coverage in 2019, according to Fox News.


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