First Thing, Daily Maverick's flagship newsletter

Join the 230 000 South Africans who read First Thing newsletter.

We write for you

It’s a public service and we refuse to erect a paywall and force you to pay for truth. Instead, we ask (nicely and often) that those of you who can afford to, become a Maverick Insider and help with whatever you can. In order for truth not to become a thing of the past, we need to keep going.

Currently, 18,000 (or less than 0.3%) of our brave and generous readers are members; which says a lot about their characters and commitment to our country. These people are paying for a free service in order to keep it free for everyone.

They are the true South AfriCANs.(Sorry, we couldn’t help ourselves.)

Support Daily Maverick→
Payment options

Obamacare subsidy cut-off would raise insurance prices:...

Newsdeck

Newsdeck

Obamacare subsidy cut-off would raise insurance prices: study

By AFP
16 Aug 2017 0

A threat by President Donald Trump to eliminate a crucial subsidy for Obamacare would sharply force up insurance costs and expand the US deficit, an independent government study said Tuesday.

The Congressional Budget Office said Trump’s threat to kill his predecessor’s popular health care program by eliminating the government’s funding of “cost-sharing reductions” (CSR) for low-income Americans would force insurers to jack up premium prices by 20 percent to cover CSRs.

The higher prices could push consumers out of individual insurance markets, making the markets less attractive to insurers as well.

Without the subsidy, the CBO said, “about five percent of people live in areas that would have no insurers in the non-group market in 2018.”

President Barack Obama’s Affordable Care Act, which sought to expand health insurance coverage, offered CSRs to people and families earning 250 percent or less of the federal poverty level, which stands at $24,600 a year for a family of four.

The subsidy reduces or eliminates their co-pays and out-of-pocket expenses for health treatment.

In a quirk of the ACA, the CRS subsidies have to be regularly renewed. Worries are that, after the July 28 failure of the Republican-controlled Congress to replace to repeal and replace Obamacare as Trump demanded, he could move to undermine the program by not renewing the subsidies at the end of this month.

“As I said from the beginning, let Obamacare implode,” he tweeted at the time. DM

Gallery

Please peer review 3 community comments before your comment can be posted