Unnoticed Trump Policies A Deep Dive Obama care.

1 year ago

The move: House Republicans had tried for years to cut off subsidies that helped low-income Obamacare enrollees with the co-pays, co-insurance and deductibles that come with their health plans. In 2017, Trump finally did it through administrative means after the GOP effort to replace the law fell apart — and he immediately drew intense outcry from Democrats and policy experts who called the move “sabotage.”

The impact: The health exchanges didn’t collapse, as Trump had hoped. Instead, health plans and states quickly figured out a way to claw back the federal dollars they lost: They built the costs of the subsidies into premiums for Obamacare’s benchmark “silver” policies. This meant that premiums for these “silver” plans spiked and as a result, the premium subsidies the government had to pay for low-income enrollees vastly increased. The concept, known as “silver-loading,” grew government subsidizing of the exchanges by upwards of $20 billion per year.

The upshot: While Trump’s moves made Obamacare plans increasingly unaffordable for the unsubsidized, Democrats quickly tamped down their criticisms since it accomplished their goal of significantly boosting funding for Obamacare. The incoming Biden administration isn’t likely to reverse course. —
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