The president had wavered for months over so-called cost-sharing reduction payments, which Republicans in Congress had long targeted in their effort to dismantle Obamacare.
President Trump went ahead and disavowed the agreement to prevent Iran from developing nuclear weapons last week, and essentially none of his peers or Cabinet secretaries agree with his decision, John Oliver said on Sunday's Last Week Tonight. The payments cost about $7 billion a year.
SIMON: But didn't a lot of people vote for President Trump because the Affordable Care Act, in many ways, even before this election - this past election - was unaffordable for millions of Americans?
The shift will end subsidized payments to health insurance companies, which have helped make health care more affordable by lowering individual premiums.
Almost 70% of the six million individuals who take advantage of the subsidies are now living in Republican majority states.
Some insurers may decide to bail out of markets altogether.
On the other hand, the Affordable Care Act benefit rules already unfairly impose higher costs on the healthy in order to make insurance more affordable for the less healthy.
The problem with having the government controlling the health insurance business is that it never says no, except when you ask if you can please stop paying so much. The goal has always been to destabilize the ACA exchanges and harm the health insurance system.
Health Reimbursement Arrangements permit employers to fund medical care expenses for their employees on a pre-tax basis. One of them, Susan Collins, a moderate Republican from ME who had been contemplating running for governor next year, on Friday said she planned to remain in the Senate and would use her voice in reforming the healthcare system. The Administration's decision and the potential for further turmoil in the individual market will likely add pressure to ongoing negotiations between Senate Health, Education, Labor and Pensions Committee Chair Lamar Alexander (R-TN) and Ranking Member Patty Murray (D-WA) to find consensus on a limited bipartisan market stabilization package. They are meant to encourage states to allow insurance purchases across state lines, which Mr. Sanford sees as promoting competition between insurance companies and reducing regulatory overhead costs, and also to allow the marketing of coverage with low premiums and high patient out-of-pocket costs. CBO expects that participating insurers would raise the premiums of Silver plans to cover the costs of providing the CSR discounts - by an average of about 20 percent in 2018 and 25 percent by 2020.
Insurance companies would first have to create new supplier networks or buy into old ones in the states where they intend to offer coverage.
The comments come after the White House announced last week that it would end key payments to insurers selling ObamaCare plans.
SIMON: But didn't health care prices and premiums go up for millions of Americans?
Trump's move was hailed by conservative groups, including Heritage Action for America and Freedom Partners, backed by the Koch brothers. "W$3 we are not getting the job done, and I'm not going to blame myself".
The decision followed an executive order that would allow insurance companies to sell plans that fall short of the coverage requirements under Barack Obama's law. Frustrated by the failure of his fellow Republicans who control both houses of Congress to repeal and replace Obamacare, Trump has taken several steps to chip away at it.
Concluding financial assistance will certainly impact insurers, since Obama's bill demands these people to decrease the costs for the poorest individuals.
"While his actions do not take the place of real legislative repeal and revitalization of free-market health care, he is doing everything possible to save Americans from crippling health care costs and decreasing quality of care", Biggs said.