The cost-sharing reduction payments are an essential component of the ACA. These payments reduce out-of-pocket costs for lower income enrollees so that individuals can actually use their insurance coverage and not be prevented from seeking care because of a high deductible or a copay they can’t afford. President Trump has been threatening since he took office to end these payments. And there is at least some possibility that he has the authority to do (see House v. Price).
Politically speaking, Trump’s goal in threatening to end these payments is either to hasten what he sees as the inevitable demise of Obamacare—or at least to use the threat of ending the payments to hold the feet to the fire of those who have resisted “repeal and replace.” Either way, Democrats have widely condemned Trump’s threats and the instability they cause in the market. Read More
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