Insurer Subsidies to End

Oct 14, 2017

Thursday night, President Trump announced plans to end Obamacare subsidies to insurers. The subsidies will cost the government $7 billion in 2017 and an estimated $10 billion in 2018. "As far as the subsidies are concerned, I don't want to make the insurance companies rich. They're making a fortune by getting that kind of money,” said the president. In response, the attorneys general for 18 states said they would sue the president and ask that the court force President Trump to make the next payment. A federal court has already ruled that the subsidies to insurers are illegal. The case is on appeal in Washington DC. No act of Congress authorized the subsidy payments to insurers. They were a creation of the Obama administration. Senator Schumer said that Congress is working to find a way to continue the subsidy payments in a bipartisan way. After announcing the administration would not make the next payment, President Trump invited Democratic leaders to the White House offering to negotiate a better deal.