Trump’s Sabotage: Premium Tax, Millions Lose Coverage
August 1, 2017
If Trump follows through on his threats to sabotage health insurance markets by ending cost sharing subsidies…
Americans would be forced to pay a “Trump premium tax” next year that could amount to as much as 50% in Idaho, alone.
Des Moines Register: “Iowans who buy their own health insurance could face even bigger premium increases next year if President Donald Trump follows through with a threat to cut off a major stream of Obamacare assistance, the state's sole remaining carrier said Monday…On Monday, Medica’s spokesman said the company would propose another 12 percent to 20 percent in increases on top of that 43 percent if Trump stops payments from a low-profile but important part of Obamacare.”
DC Examiner: “Idaho's insurance regulator blasted the Trump administration's unwillingness to pay Obamacare insurers as the reason premiums could rise by up to 38 percent next year. The state's Department of Insurance posted proposed rates for 2018 Monday. The state's six Obamacare insurers are calling for an average 38 percent rate hike, including a 50 percent increase for the silver plan, which is the most popular of Obamcare's three plan options.”
Millions of Americans could be left without health insurance options as insurance companies flee exchanges.
CNN Money: “If Trump makes good on his threat to stop paying the subsidies, he would likely precipitate Obamacare's implosion. Insurers would probably flee the exchanges in 2018, if not before. That could leave millions of Americans without any options for subsidized coverage in the individual market.”
Columbus Dispatch: “Insurance coverage is likely to be restored on the federal health exchange for Ohioans in at least 19 of 20 counties where insurers recently announced they are pulling out. But the measure appears to be only a temporary fix — and it may never happen if President Donald Trump carries out a threat to undermine Obamacare.”
It would actually cost the government more money, rather than saving money.
Axios: “The move would end up costing the federal government more money, rather than saving money, because the ACA tax credits would adjust to cover the higher premiums. The Kaiser Family Foundation predicts a net increase of $2.3 billion in federal costs next year.”
Middle class families would be hurt the most.
Dallas Morning News: “Health policy experts have long warned the move will drive up premiums and cause insurers to bail. Experts say that the poorest insurance buyers will be protected because subsidies from the companies would remain, leaving the middle class to bear the brunt of premium hikes.”