Halt In Subsidies For Health Insurers Expected To Drive Up Costs For Middle Class

President Trump talks Thursday about an executive order to ease the way for groups of employers to offer health insurance. Later, the administration said it would halt subsidy payments to insurers.

Alex Wong/Getty Images


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Alex Wong/Getty Images

President Trump talks Thursday about an executive order to ease the way for groups of employers to offer health insurance. Later, the administration said it would halt subsidy payments to insurers.

Alex Wong/Getty Images

Updated at 11:29 a.m. ET

President Trump’s decision Thursday to end subsidy payments to health insurance companies is expected to raise premiums for middle-class families and cost the federal government hundreds of billions of dollars.

The administration said it would stop reimbursing insurers for discounts on co-payments and deductibles that they are required by law to offer to low-income consumers. The reimbursements are known as cost-sharing reduction payments, or CSRs.

Insurance companies still have to give the discounts to low-income customers. So if the government doesn’t reimburse the insurers, they’ll make up the money by charging higher premiums for coverage.

The subsidy cut was the second swipe

Article source: http://www.npr.org/sections/health-shots/2017/10/13/557541856/halt-in-subsidies-for-health-insurers-expected-to-drive-up-costs-for-middle-clas?utm_medium=RSS&utm_campaign=affordablecareact

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