Trump signed an executive order earlier today meant to further undermine the Affordable Care Act and strip millions of their insurance. Now he’s taken that a major step farther and possibly completely derailed it. He issued a notice claiming that the cost-sharing subsidies—which have been critical in helping insurers keep premiums lower, therefore insuring more people—were illegal and in violation of court orders, and he is ending them immediately.
He said:
“Based on guidance from the Department of Justice, the Department of Health and Human Services has concluded that there is no appropriation for cost-sharing reduction payments to insurance companies under Obamacare. In light of this analysis, the government cannot lawfully make the cost-sharing reduction payments.”
Here’s the full statement, if you want to read something absolutely infuriating:
Here’s the thing: There are Republicans who believe this is a step too far. While they did sue the Obama administration over the subsidies for not being properly appropriated through Congress, some are still smart enough to know that suddenly cutting them off spells disaster for many people in their own districts. For instance, Rep. Ileana Ros-Lehtinen, a Florida Republican, tweeted out:
Cutting health care subsidies will mean more uninsured in my district. @potus promised more access, affordable coverage. This does opposite.
— Ileana Ros-Lehtinen (@RosLehtinen) October 13, 2017
Leaders inside the health insurance industry are upset about this, too. They’re getting a $7 billion jolt in their already fragile markets. Trump and the GOP have been working to destroy the ACA so they can finally, truthfully say it’s a disaster, and apparently that sudden, $7 billion cutoff is how Trump is going to do it. The CEO of L.A. Care Health, John Baackes, finds this to be a gross dereliction of duty on Trump’s part:
“What it adds up to me is a gross dereliction of duty. The Affordable Care Act is still the law of the land and the cost-reduction subsidies are part of that. … Even if there’s a lawsuit about it, it should still be honored until the last appeal is exhausted. I thought they took oaths to uphold the law of the land. They’re just flaunting it now.”
Greg Scott, who oversees Deloitte’s health plans consulting practices, said:
“Certainly problematic markets are going to become more unstable.”
And, of course, Democrats like New York Attorney General Eric Schneiderman are livid, too. He issued a statement saying:
“I will not allow President Trump to once again use New York families as political pawns in his dangerous, partisan campaign to eviscerate the Affordable Care Act at any cost. This summer, the courts granted our intervention to defend these vital subsidies and the quality, affordable health care they ensure for millions of families across the country. Our coalition of states stands ready to sue if President Trump cuts them off.”
Schneiderman probably has the best take on this. Everyone who’s been getting their insurance through the ACA is now at risk of losing it because Trump is desperate to score political points. Way to go, Dear Leader. You’re a sorry sonofabitch. The ACA’s failure is on your head.
Featured image via Alex Wong/Getty Images
