A report conducted by the Congressional Budget Office (CBO) has estimated that insurance plans under the Affordable Care Act (ACA) would rise by 20 percent within a year if President Donald Trump refuses to keep subsidizing the health care law.
Analysts said the number of uninsured would increase by 1 million in 2018, mainly due to insurers dropping out of the marketplace. Their subsidies will rise along with Silver premiums, but they'll choose to buy Bronze or Gold plans instead, whose premiums won't be much affected.
Anthem's departure - along with Aetna and UnitedHealthcare - means only one insurer will offer individual plans in more than half of Virginia's counties and independent cities next year, according to Katha Treanor, a spokeswoman for Virginia's Bureau of Insurance. Overall, the federal deficit would increase nearly $200 billion over ten years. In Trump's opinion, if he stopped paying these cost-sharing reductions, Obamacare would "implode", and Democrats would have no choice but to negotiate a replacement plan.
The move comes almost two weeks after President Donald Trump took aim at insurers by threatening to cut the healthcare subsidy payments that make Obamacare plans affordable, after repeatedly failing in his efforts to dismantle former President Barack Obama's healthcare law. "But President Obama made one of his many administrative decisions to pay out the subsidies without authority".
About 5% of people would live in areas that would have no insurers next year, increasing the number of those who lack coverage initially.
"I think the government - Congress and administration, has treated [insurance companies] shamefully", Timothy Jost, emeritus professor at Washington and Lee University School of Law, told ThinkProgress.More news: Apple sets United States dollars 1 bln budget for original content
More news: Malala Yousafzai set for Oxford after A-level success
More news: Kenya Election: Raila Odinga To Challenge Result In Court
The nonpartisan CBO scored the policy option at the request of House Democratic leadership, releasing its results just weeks after the Senate failed to deliver on a seven-year campaign promise to repeal and replace the federal health care law.
That requirement can save thousands of dollars for families with big medical bills, especially those with low incomes, but it imposes a significant cost on insurance companies.
President Trump said he would pull Obamacare's cost-sharing subsidies, a decision that, according to a CBO analysis, would cause an increase of 20 percent in the next year, and in the course of 10 years, increase the deficit by $194 billion. An abrupt cutoff of the cost-reduction payments would be among the quickest ways to make that happen.
The subsidies are now the subject of litigation. "Congress owes struggling Americans who buy their insurance in the individual market a breakthrough in the health-care stalemate", Alexander said.
"The Trump administration has sent strong signals about its intent to reduce or even eliminate enforcement of the individual mandate", Pallone, the top Democrat on the House Energy and Commerce Committee, and Rep. Richard Neal (D-Mass.) wrote to General Accounting Office.