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Executive Order
Issued on October 12, 2017

Summary

On Thursday, October 12th, President Trump scrapped subsidies to health insurance companies and signed an executive order that changed insurance market regulations. The subsidies, called cost-sharing reduction (CSR) payments, help pay out-of-pocket costs for low-income people. In this desperate effort to ditch Obamacare, the White House released a statement saying, “The government cannot lawfully make the cost-sharing reduction payments” and urging Congress once again to repeal and replace the ACA. The announcement to cut off CSR payment came just hours after Trump signed an executive order making major changes to the insurance system, including allowing sales of cheaper policies with fewer benefits and fewer consumer protections. LEARN MORE

Analysis

Trump has faced opposition from both parties following his executive order and announcement. Without these subsidies, insurance companies will be forced to raise premiums and some may pull out of insurance marketplaces under the ACA. Many Democrats feel the president is trying to sabotage the ACA so that he can blame it for insurance market chaos. According to Sen. Chuck Schumer and Rep. Nancy Pelosi, Trump “apparently decided to punish the American people for his inability to improve our health system.” Two Senators, Republican Sen. Lamar Alexander of Tennessee and Democrat Sen. Patty Murray of Washington, struck a bipartisan deal on Tuesday, October 17th to fund CSR subsidies for two years. Trump originally agreed to continue the subsidies in exchange for giving states more flexibility to regulate health care under the ACA. While this deal could offer short-term relief, Trump continues to change his support for the bill and is still promising the American people a “great solution” for health care in the future. In the meantime, the Alexander-Murray bill has strong bipartisan support in the Senate. LEARN MORE

Engagement Resources

This brief was compiled by Ann Furbush. If you have comments or want to add the name of your organization to this brief please contact Ann@usresistnews.org.


 

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