BREAKING: Trump Ends ObamaCare Subsidy Payments
Well, all along he’s said that when the whole system collapses, Congress will have to get serious about it.
The whole system just collapsed!
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.
It’s illegal to spend money that hasn’t been appropriated so . . . DONE . . .
In other news, the Democrats aren’t happy. Oddly, the Republicans won’t be happy either I suspect.
This is really big stuff. This slush fund of money is what kept the entire system more or less afloat. We’re expecting a White House statement shortly and I’ll update it once we have more information.
UPDATE: 12:30 AM EDT – What is the Cost Sharing Reduction?
Just to be clear on what this is, there is a Obamacare subsidy that lets people buy Obamacare insurance at a lower cost based on your income and your age. This isn’t what we’re talking about here.
A CSR (Cost Sharing Reductions) is:
A discount that lowers the amount you have to pay for deductibles, copayments, and coinsurance. In the Health Insurance Marketplace, cost-sharing reductions are often called “extra savings.” If you qualify, you must enroll in a plan in the Silver category to get the extra savings.
- When you fill out a Marketplace application, you’ll find out if you qualify for premium tax credits and extra savings. You can use a premium tax credit for a plan in any metal category. But if you qualify for extra savings too, you’ll get those savings only if you pick a Silver plan.
- If you qualify for cost-sharing reductions, you also have a lower out-of-pocket maximum — the total amount you’d have to pay for covered medical services per year. When you reach your out-of-pocket maximum, your insurance plan covers 100% of all covered services.
- If you’re a member of a federally recognized tribe or an Alaska Native Claims Settlement Act (ANCSA) Corporation shareholder, you may qualify for additional cost-sharing reductions.
The intent here is that if you’re really poor, you can buy a super duper plan for not much money. <SARC>Of course, you have to have the money in the first place but if you do, you can go get all sorts of wonderful healthcare! </SARC>
Without this slush fund, the insurers will simply hemorrhage money because their possible downside risk is unlimited.
UPDATE 1:00 AM EDT – Attorney Generals in Liberal States to Sue to Keep the Subsidies Going
— Xavier Becerra (@AGBecerra) October 13, 2017