At the request of Nancy Pelosi, the Congressional Budget Office has just released a study intended to better understand the potential economic impacts that would result from the cancellation of taxpayer funded Obamacare subsidies (a.k.a. “cost-sharing reductions” or “CSRs”).
As the Obamacare repeal and replace effort raged on in Congress over the past six months, several Democrats and even some of the original Obamacare architects stepped forward to argue that the crippling premium increases from 2014 through 2017 were just a 1x market adjustment and that everything would miraculously ‘stabilize’ in 2018.
Obamacare premiums have been exploding higher ever since the controversial legislation took over health insurance markets. And while many would say that another year of premium increases is a logical extrapolation of a predictable, multi-year trend resulting from a failed policy, others would like for you to believe that the massive (yet consistent) premium increases being proposed for the 2018 plan year are unique because they’re Trump’s fault .
President Barack Obama and Donald Trump meet in the Oval Office, Nov. 10, 2016. (Jabin Botsford/The Washington Post) The Obama administration began the practice of disbursing Cost Sharing Reduction (CSR) subsidies to health insurance firms under the Affordable Care Act, even though the funds in question have never been appropriated by Congress.
For a prime example of how the poorly conceived policy of Obamacare interacts with the Trump administration’s disregard for the rule of law, look no further than the debate over the health law’s subsidy payments to health insurance companies.
For President Trump, they are bailouts for insurers. For millions of Americans, they are a lifeline to affordable health care coverage. Obamacare’s cost-sharing subsidies are once again at the center of the battle for Obamacare’s future.
With the Senate having failed to repeal Obamacare, after a critical “Nay” vote by John McCain crushed Trump’s biggest campaign promise shortly after midnight on Thursday, Trump is plans to kill Obamacare slowly, and this time he has vowed to take insurance companies and members of Congress down with it.