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Trump's New Executive Order Aims To Expand Health Care Options

Trump's New Executive Order Aims To Expand Health Care Options

President Donald Trump plans to halt payments to insurers under the Obama-era health care law that he has been trying to unravel for months.

"It introduces a lot of chaos, but this doesn't threaten its future", Larry Levitt, senior vice president at the Kaiser Family Foundation, said of the Affordable Care Act.

A White House statement said that based on guidance from the Justice Department, "the Department of Health and Human Services has concluded that there is no appropriation for cost-sharing reduction payments to insurance companies under Obamacare". "Obamacare has proven itself to be a fatally flawed law, and the House will continue to work with Trump administration to provide the American people a better system".

People with lower incomes will be unaffected since the ACA provides government subsidies that ensure their out-of-pocket insurance costs remain stable.

Under the Obama administration, such short-term plans could not last more than three months, but Trump plans to extend that duration to nearly a year.

"This shocking action is several steps beyond the sabotage of our health system, but more the equivalent of Trump swinging a baseball bat wildly in a china shop", said Anthony Wright, head of Health Access California. "In light of this analysis, the Government cannot lawfully make the cost-sharing reduction payments", the White House announced in a statement Thursday evening.

That case became more complicated in August when a US appeals court allowed 16 Democratic state attorneys general to defend the payments and have a say in the legal fight. "Congress has not appropriated money for CSRs, and we will discontinue these payments immediately".

Experts worry that using loopholes to skirt Obamacare rules will destabilize the market for remaining customers.

Conservatives weighed in on President Trump's executive order on Obamacare on Thursday. And what about the more than 10 million Americans enrolled in Obamacare?

The president has been threatening all year to cut off the payments, which he refers to as a bailout.

Meanwhile, a nationwide survey revealed in September that the US public favors Obamacare over the Republican Graham-Cassidy healthcare proposal by a 23-point margin.

Trump's intentions were signaled late on Thursday - just hours after he signed an executive order that allows small businesses to band together and buy health insurance that flouts ACA regulations. "This will be great health care". The changes Trump hopes to put in place may not even be finalized in time to affect coverage in 2019.

"Sadly, instead of working to lower health costs for Americans, it seems President Trump will singlehandedly hike Americans' health premiums", they said. Republicans call Obamacare, which extended health insurance to 20 million people, a government intrusion into Americans' healthcare, and have been promising for seven years to scrap it.

"Because the tax credits would increase when premiums for silver plans rose, the agencies estimate that the average subsidy per person receiving premium tax credits to purchase non-group health insurance would increase", the report said.

Court challenges to Trump's new order are expected. "And they will have so many options". But they could have the same sort of impact if they become widespread.