23 Aug 2017

President Trump Agrees To Make Obamacare Payments

President Trump Agrees To Make Obamacare Payments

The American public breathed a sigh of relief on Tuesday as the White House announced they would be making vital cost-sharing reduction payments for the month of August. For the last few months, the Trump administration has threatened to stop these payments, which would send the American insurance industry into a state of chaos.

Republican Ideology

It’s obvious Donald Trump despises the Affordable Care Act and has been a vocal critic of the bill since it was passed in 2010. Over the past few months, the Republicans have tried on numerous occasions to pass repeal and replacements bills in Congress, with all attempts being thwarted.

This has left many Americans who rely on Obamacare plans feeling anxious and uncertain about the future. Their president is feverously trying to dismantle the only viable and affordable health care option on the market.

Cost-Sharing Reduction Payments

This naturally relays back to the subject of cost-sharing reduction payments, also known as CSRs in the political and financial world. When the Affordable Care Act was ratified, the federal government agreed to siphon money to insurance companies, which effectively reduces monthly premiums for millions of low-income citizens. The bottom line is that these CSRs make Obamacare plans affordable.

How much money are we talking about though? According to Reuters, the 2017 payments equate to approximately $7 billion. Meanwhile, approximately six million people receive affordable health care through these cost-sharing reduction payments.


In 2015, these payments faced legal opposition as the Republicans filed an official lawsuit stating CSRs were paid through an illegitimate executive branch.

A judge ruled in 2016 that they were indeed illegal, but the Obama administration successfully appealed. This ensured the monthly payments were allowed to continue and prevented the Republican attempt to dismantle the status quo.

Tactics and Sabotage

In political circles, it’s clear these CSRs are very controversial. However, the President has started to make threats over social media to halt the payments, tweeting “If a new HealthCare Bill is not approved quickly, BAILOUTS for Insurance Companies and BAILOUTS for Members of Congress will end very soon!”

He also stated on Twitter “If ObamaCare is hurting people, & it is, why shouldn’t it hurt the insurance companies & why should Congress not be paying what public pays?”

Potential Catastrophe

According to a recent report by the Kaiser Family Foundation, if Trump halted these payments, it would have devastating consequences on the population and would create an imbalance within the insurance industry. Monthly premiums would increase by double digits over the course of a year; meaning millions of Americans would either lose their coverage or wouldn’t be able to afford it.

Relief & Uncertainty

Many Americans were glad to hear on Tuesday the Trump administration would be making August payments for these CSRs. But, many political analysts say that Trump’s attitude indicates these payments will inevitably stop in the next few months and the public, as well as the insurance industry, should be ready to brace for impact.

If you’re nervous about the future, contact HealthQuoteInfo and speak to one of our qualified agents about this subject. We understand this is a volatile period in the US history, and we’re here to help guide you through these tumultuous times.


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