Trump’s Threatening Obamacare Tweets: No Overhaul, No Subsidies

Trumps Threatening Obamacare Tweets No Overhaul No Subsidies

President Donald Trump on Saturday threatened to withhold some of the billions of dollars the federal government pays to insurance companies under Obamacare if Congress fails to repeal and replace the health care law.

“After seven years of ‘talking’ Repeal & Replace, the people of our great country are still being forced to live with imploding ObamaCare!” Trump tweeted.

“If a new HealthCare Bill is not approved quickly, BAILOUTS for Insurance Companies and BAILOUTS for Members of Congress will end very soon!” he added in another tweet.

That follows a tweet Trump sent Friday night.

“As I said from the beginning, let Obamacare implode, then deal. Watch!” Trump tweeted after the third Obamacare overhaul option of the week was defeated in the Senate.

For months, Trump has said he could withhold what are known as Cost Sharing Reduction payments. These payments to insurance companies allow consumers to have lower deductibles, copayments and insurance premiums. Although the White House has said it would pay the CSR payments for July, it hasn’t made a promise about August.

When Trump threatened earlier this year to stop the payments, Democrats objected.

“Failing to make these payments would be a direct effort by the administration to further undermine the health care system in this country, putting care for millions of Americans at risk,” said Matt House, a spokesman for Senate Minority Leader Chuck Schumer, D-N.Y.  “President Trump has an obligation to drop his attempts to repeal the Affordable Care Act, and instead work with Democrats to strengthen it.”

The Los Angeles Times reported that insurers receive about $600 million per month under the payments.

The Times analysis predicted that if Trump were to stop making the payments, premiums would rise and some insurers would pull out of the market.

The Times suggested Congress would fight Trump on this “since many Republican members of Congress fear that chaos in the markets would be bad for their constituents, not to mention their political futures.”

There are other options Trump can do to impact Obamacare. The Department of Health and Human Services can reduce outreach, which would limit the numbers of people signing up.

Although only Congress can wipe the mandate for coverage off the books, the administration make it clear that it would not enforce it. Also, in states that expanded Medicaid under Obamacare, the administration could allow states to add conditions — such as a work requirement — to getting Obamacare.

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