President Trump has signed an Executive Order addressing health care. Now it appears that he’s taking the next logical step to dismantling Obamacare.
The President is planning to halt the “massive” ObamaCare subsidies, ENDING Obama’s illegal insurance giveaway, according to Fox News.
Effective “immediately,” President Trump is halting payments to insurers under the Affordable Care Act, with the Justice Department swiftly notifying a federal appeals court in Washington, DC that the Oct. 18 payment “will not occur.”
The White House made a statement that the Department of Health & Human Services decided that they were halting the payments and that there is no appropriation for cost-sharing reduction payments to insurers under the Obamacare law. “In light of this analysis, the Government cannot lawfully make the cost-sharing reduction payments,” said a White House aide in the statement.
These payments were created as part of the Affordable Care Act but were met with a lawsuit from Republicans during the Obama administration. Although a federal court ruled that the payments were illegal, the former-President appealed the decision. Ever since, Congress has been hesitant to take action necessary to stop these payments, according to The Hill.
“We will discontinue these payments immediately,” added acting HHS Secretary Eric Hargan and Medicare administrator Seema Verma.
“The Democrats ObamaCare is imploding. Massive subsidy payments to their pet insurance companies has stopped. Dems should call me to fix!” Trump tweeted. “ObamaCare is a broken mess. Piece by piece we will now begin the process of giving America the great HealthCare it deserves!” he said in another tweet.
Trump has been threatening to end payments to insurers for a while now, although he did say that payments could have continued if a bipartisan deal was reached on healthcare, according to The Wall Street Journal.
Instead, the administration will likely face a series of lawsuits from various state attorney generals, who will likely argue in court that the subsidies to insurers are fully legal. Xavier Becerra (D), California’s attorney general, already called Trump’s decision a deliberate attempt at “sabotage,” and promised a lawsuit.
Senate Minority Leader Charles Schumer (D-NY) and House Minority Leader Nancy Pelosi (D-CA) both stated that Trump’s move was a “spiteful act of vast, pointless sabotage … now, millions of hard-working American families will suffer just because President Trump wants them to.”
President Trump has signed an Executive Order to halt Obamacare subsidies. Can he do this?
President Trump’s decision has come in light of his announcement to offer “alternatives” to the burgeoning Obamacare plans. As per his Executive Order, small and mid-sized employers will be able to form groups across state lines in order to help negotiate with insurers for more affordable plans.
At the same time, Trump is hoping that this cessation of payments will help pressure some Democrats into joining the GOP in pushing through a repeal bill through the Senate. Despite this Executive Order, the White House still believes that Congress needs to repeal and replace the Affordable Care Act of its own volition. The Oval Office describes this first order as a necessary first step.
Trump has said that the health care system “will get better” because of these decisions and that this order will give people more competition, more choices, and lower premiums — a stark contrast to what the Affordable Care Act delivered.