Trump Killed Subsidies to Insurers, Not You

President Trump announced that he will end cost-sharing subsidies to insurers. Find out how this impacts your plan.

President Trump announced that he will end cost-sharing subsidies to insurers. Find out how this impacts your plan.

Though Trump is slashing healthcare subsidies directly paid to insurers, it does not affect anyone who qualifies for a premium subsidy or tax credit. In short, the government won’t be paying insurers anymore, just you. While insurers are now denied subsidy payment, the government still pays for your care by funding Medicaid and offering tax credits. These subsidies are mandated by the Affordable Care Act, it is law.

Even with Trump cutting off federal payment to insurers, under the Affordable Care Act (Obamacare) insurers still have to provide discounted plans. With no money from the government to offset the cost of cheaper plans, insurers will be footing a larger portion of the bill resulting in higher premiums. Most insurers are likely to specifically raise the premium rates of silver plans as those are the plans where cost-sharing reductions are applied. In case you’re worried how you’ll pay for the rate increase of silver plan know that tax credits will go up to pay for the higher premiums.

The takeaway is knowing that until the ACA is repealed, your access to affordable health care is protected and ensured. It is simply the law. The only threat is if all insurers pull out of the exchange, leaving consumers with no options to enroll in a plan that is subsidized. But for now, breathe easy because you are still covered and the government is still subsidizing your care.

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