Trump Cuts Cost-Sharing Subsidies, but It Won't Matter to Insurers
Donald Trump campaigned for president on a platform that includes repealing and replacing the Affordable Care Act, or Obamacare. However, Congress has failed to get a plan to his desk so far, prompting Trump to look for other ways to force Obamacare under. Last week, Trump issued an order eliminating the cost-sharing reduction subsidies paid to insurers on plans sold to low-income families, ostensibly to force insurers to exit Obamacare.
In theory, ending these cost-sharing reduction payments squeezes insurers' margins, but in practice, his decision probably won't have the impact on insurer profits desired. Insurers largely expected Trump would cut these payments, so they're increasing monthly premiums to levels that offset any revenue shortfall his decision would cause.
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Source: Fool.com
