Trump rolled subsidies for insurance companies providing Obamacare
President Trump said Friday that his goal was to cancel his predecessor’s health insurance plan a few hours after his administration announced it would stop paying subsidies to insurance companies for low-income patients.
Democrats said Trump's goal would mean higher health care costs for workers and middle-class families.
Senate Democratic leader Chuck Schumer and House Democratic leader Nancy Pelosi in a joint statement strongly condemned the termination of subsidies, saying that Trump single-handedly increases the cost of health insurance for US citizens.
“This is an evil act of large-scale and senseless sabotage directed against working families and the middle class throughout America,” they said.
In another message Twitteraddressed to the democrats, Trump said:
The subsidies in question are the subject of a federal lawsuit, and Trump’s decision to stop is likely to cause more litigation by state attorneys general who claim that subsidies to insurers are fully authorized by federal law.
“We are prepared to take legal action,” said California Attorney General Xavier Beerra. “We took the Trump administration to trial and won.”
Republicans sued 2014 for a year, claiming that the Obama administration issues them illegally. A federal judge in Washington, DC, agreed with them, but the Obama administration appealed this decision.
The White House said it can no longer legally pay subsidies. According to the statement, the decision was based on the recommendations of the Ministry of Justice.
Subsidies help lower payouts for people with modest incomes.
The termination of payments will cause a price increase for the next year, if Trump does not change course or Congress does not allow to pay this money. The following payments must be submitted around October 20.
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