Donald Trump is ending some Obamacare subsidies and that’s not a good thing. According to new Bloomberg report, Trump’s move could end up costing taxpayers almost $200 billion more on health insurance.
“Here’s why: The subsidies clamped by Trump, known as cost-sharing reductions, are paid to insurers, reimbursing them for lowering deductibles and other out-of-pocket costs for low-income people. If the funds vanish, insurers will make up for them by boosting the cost of health coverage for everyone. Many had already said they will charge more for plans next year, on the expectation that the administration would follow through on months of threats to end the payments.”
Trump is acting without knowing. His plan will not only be bad for Americans, but it will be bad for the economy as well. According to the Congressional Budget Office ending the cost-sharing payments would increase the budget deficit by $194 billion over the next decade.
You can read the full report HERE.