White House Says It Will End Key Obamacare Subsidies to Insurers

The federal budget deficit would rise by $6 billion next year, $21 billion in 2020 and $26 billion in 2026 as low- and moderate-income Americans make more use of tax credits to offset rising premiums, it said.

 

The CBO said it expected that insurers in some states would withdraw from or not enter some markets because of “substantial uncertainty.” But it projected that by 2020, “more insurers would participate, so people in almost all areas would be able to buy nongroup insurance.”

 

And it said most people would pay net premiums for nongroup insurance similar to or less than what they would have paid otherwise over the next decade, after taking premium tax credits into account.

 

In Thursday night’s statement, the White House said: “Based on guidance from the Department of Justice, the Department of Health and Human Services has concluded that there is no appropriation for cost-sharing reduction payments to insurance companies under Obamacare.”

 

“The bailout of insurance companies through these unlawful payments is yet another example of how the previous administration abused taxpayer dollars and skirted the law to prop up a broken system,” The White House said.

 

It said that “Congress needs to repeal and replace the disastrous Obamacare law and provide real relief to the American people.”

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