Why the Trump Administration will keep insurance subsidies in place
President Donald Trump is considering a range of changes to the Affordable Care Act that will help stabilize the marketplaces, including capping the amount insurers can charge and limiting subsidies to the most expensive plans.
But the president is also considering scrapping the subsidies that were designed to encourage people to keep their coverage as the government attempts to stabilize the insurance markets.
The subsidies, which help low- and moderate-income people purchase insurance through the health care law, will be kept in place through 2026 and would only kick in for people who have paid a deductible or copayment of $3,500 or more a year.
The Trump administration has also said it wants to keep subsidies for people earning up to 100% of the poverty level for three years, but it is unclear what that means for other Americans.
Insurers are worried that some of those subsidies may not kick in until next year.
Under the ACA, people can get subsidies for an average of up to $2,000 a year for health insurance and another $1,000 for employer-sponsored insurance.
The administration is weighing whether to expand those subsidies for more people and for people making up to 400% of poverty, a figure the Congressional Budget Office says is likely to increase premiums.
The federal government already has $6 billion in subsidies that people can use to buy insurance through state exchanges, but they are not paid to insurers and have to be used to buy policies on the exchanges.
That means most Americans who would like to buy health insurance on the exchange will have to pay for their own premiums.
Under President Donald J. Trump, a bill has been introduced to allow people to buy private insurance through a federal health care exchange.
The measure, known as Graham-Cassidy, would keep some of the subsidies but reduce the maximum cost of coverage for those making up 200% of a family’s income.
Graham-Cassidy also would reduce the annual cost of a plan to $25,000, which would make the legislation more palatable to moderates.
In addition, the bill would end the individual mandate, which requires most people to have health insurance.
It would also allow states to use a variety of other rules to determine what types of plans are most affordable for people with low incomes.
The White House said on Wednesday that it was still considering whether to repeal the ACA’s Medicaid expansion.
That would allow states and localities to opt out of the program that helps low-income residents buy insurance and provides health coverage to the uninsured.
A number of states have pushed to expand Medicaid and many Republicans have expressed concerns about how it could affect premiums.