The Trump administration made a decision that could help the Affordable Care Act implode.
On Thursday, President Donald Trump said he will stop payments to insurers that help offset healthcare costs.
The payments, known as cost-sharing reductions, are paid to insurance companies to help offset the cost of discount health plans they provide to Americans making 200% of the federal poverty limit. Without them, it could lead to higher premiums and fewer insurance plan choices in the exchanges.
Some states, including Mississippi, Alabama, Florida, and South Carolina, benefit the most from cost-sharing reduction payments.
This isn’t the first time Trump has threatened to withdraw CSR payments, but as recently as August, he said he’d pay them. Insurers have repeatedly said that should the payments be cut, premiums would increase.