There’s a new saga unfolding on Capitol Hill this week, as several politicians have engaged in a new dispute regarding health care. Democratic and Republican governors have started to plead with the President’s administration, as he withholds critical payments to the insurance industry. The payments are worth nearly $8 billion and are vital because they partially subsidize Obamacare plans for low-income Americans.
Trump despises Obamacare
In case you’ve been living under a rock for the last few years, it’s no secret that Donald Trump absolutely despises the Affordable Care Act. He’s made it his mission to dismantle and replace the bill but over the last few months, this has proven to be more challenging than previously thought. Trump and the ruling Republicans in Congress have tried and failed several times to pass a repeal-and-replace bill. This is due to the fact it’s difficult to achieve a consensus on the subject matter and even within the Republican party, there’s a massive schism.
If you can remember, we published an article last week detailing how the Senate began a continuous debate in order to achieve some sort of progress regarding the status of Obamacare.
There were three viable options on the table:
- A partial repeal, keeping key aspects of the Affordable Care Act while replacing unpopular provisions
- A complete repeal, meaning they would scrap everything
- A repeal-and-replace strategy, which would involve drafting a new version of the BCRA, which would be approved by the Senate
The debate ended in a dramatic late-night vote where Sen. John McCain tipped the scales and voted down a partial repeal after the Senate debated and rejected the other two options. So, basically everything on the table was chucked out the door and they achieved nothing.
But what are CSRs?
This leads our conversation to the subject of federal funding. In order for Obamacare plans to be affordable, the federal government sends payments to insurance companies, which collectively reduce the monthly premiums for low-income Americans. The specific name for them is called cost-sharing reduction payments, and the federal government is seemingly withholding nearly $8 billion, creating an atmosphere of uncertainty and panic.
This is why several governors from both political parties have begun to plead with the Trump administration to facilitate these payments. In a statement provided by the Health and Human Services Committee of the National Governors Association, the government “has the opportunity to stabilize the health insurance market across our nation and ensure that our residents can continue to access affordable health care coverage.”
What does this mean for Americans?
Insurance companies are currently finalizing the premiums for 2018 and if they don’t receive these cost-sharing reduction payments, prices will likely rise. This would negatively impact low-income Americans who rely heavily on Obamacare plans due to the affordability factor. This in turn may force hundreds of thousands of individuals to switch over to Medicaid. This program is also in a state of limbo as many politicians have voiced their desire to reduce funding towards this vital lifeline.
This dysfunction has created a lot of anxiety in the hearts of Americans, but it’s important to remain calm and remain up-to-date with all this information. You can always rely on HealthQuoteInfo for trustworthy information and can speak to one of our agents if you have any remaining questions regarding this subject. Give us a call today at 855-614-5057.