Trump To Scrap Crucial Obamacare Insurer Subsidy

Tyler Durden's picture

Update: Late Thursday, the administration said it would immediately stop paying what are known as cost-sharing reduction subsidies. The payments go to health insurers in the Affordable Care Act to help lower-income people with co-pays and other cost sharing. Without them, insurers have said they’ll dramatically raise premiums or pull out of the law’s state-based markets.

According to Bloomberg, the White House said the Department of Justice and the Department of Health and Human Services both concluded that there is no appropriation for cost-sharing reduction payments to insurance companies under Obamacare. “The bailout of insurance companies through these unlawful payments is yet another example of how the previous administration abused taxpayer dollars and skirted the law to prop up a broken system,” the White House said in the statement.

The payments will stop immediately, with no transition period, Acting HHS Secretary Eric Hargan and Centers for Medicare and Medicaid Services Administrator Seema Verma said in a statement. They next payments were due next week.

“Congress has not appropriated money for CSRs, and we will discontinue these payments immediately,” the department said.

* * *

Just hours after signing an executive order that implicitly begins unwinding ObamaCare, Politco reports, citing two people familiar with the matter, that President Trump plans to cut off critical subsidy payments to insurers selling Obamacare coverage. The decision, which critics call deliberate attempts to sabotage the law, come just weeks before Americans will be able to start signing up for coverage for 2018. They follow other steps the Trump administration has taken, such as slashing advertising and outreach budgets meant to get people to sign up, as well as planning outages of the website where people can enroll.

Earlier today, Trump signed an executive order expanding access to more loosely regulated insurance options with low premiums, a move that could undermine the ACA insurance markets.

“We’ve been hearing about the disaster of Obamacare for so long,” Trump said in signing the order at a White House ceremony. “For a long time, I’ve been hearing repeal, replace, repeal, replace.”


He then said that the order is "starting that process" to repeal ObamaCare.


It will be the "first steps to providing millions of Americans with ObamaCare relief."

And now, as Politico reports, the process appears to accelerating as Trump's decision to end the payments, estimated at $7 billion this year, marks the president's most aggressive move yet to dismantle Obamacare after months of failed GOP repeal efforts on Capitol Hill.

As Reuters notes, Trump has repeatedly threatened to stop the payments, which are made directly to insurance companies to help cover out-of-pocket medical expenses for low-income Americans enrolled in individual healthcare plans under Obamacare.

The move is likely to draw lawsuits and may put pressure on Congress to appropriate funding for the subsidies.

This latest move is likely to throw healthcare markets into chaos, and will infuriate Democrats - effectively closing the 'Chuck and Nancy' channel of communications - leaving a deal to avert government shutdown on or after Dec 8th (when the currenct extension deal runs out) increasingly doubtful.

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Rapunzal's picture

If he doesn't scrap the tax penalty for not having health insurance, everything else doesn't matter. We need a choice to opt out of this scam.

claytonmoore50's picture

He really meant "We CORNED some folks..."

NoDebt's picture

All worthless without repealing the underlying law.  Future presidents can just put all that shit (or worse) back in place.

Never going to go away, guys.  I'm sorry, but it's not.  Yet another entitlement that will never be withdrawn, just endlessly fiddled with around the margins.


nonclaim's picture

Repeal and replace the RINOs and you may get it done (or undone).

847328_3527's picture

I know; what abou tthat Obamacare tax penalty?

EO that assinine law down the drain.

JohnG's picture

Lie on your tax return.  It is NOT being enforced.

JohnG's picture

Hell, I think of tax avoidance as a sport.

Pay me in cash, what cash.....

Fuck they have to audit you to find it anyway and you can (and I have) made that very fucking difficult.

I'll get back to you with that peice of paper when I can find it....

BennyBoy's picture


How are Trumps EO following the Constitution when the prez is supposed to  "take Care that the Laws be faithfully executed."

If any elector elected prez can make up or change laws why do we need congress or the clowns on the supreme court?

All hail the US newest dictator!

johngaltfla's picture

In political parlance, that is known as giving Mitch McCONnell the "Big Harvey" since the he can't run the Senate.

Commielib heads gonna be splodin' over this one.

I'm loving it.

cheech_wizard's picture

There are days I swear you slept through the Obama Presidency... and the ones before that.

Standard Disclaimer: I'm probably not the only one waiting for you to be "post"menopausal.




Mentaliusanything's picture

That was like with my Divorce 10 years ago. Her lawyer wanted 10 years of full tax disclosure, cheque stubs and business account Bank statements, credit card Stats ect by 5.00pm on  xx date or else!!. I arrived at 1minute before, unwrapped 80Lbs of paper and chucked the lot into the Air shouting Merry Christmas Muther Fuckers. They settle amicable like on Monday.  My best work ever!

nmewn's picture

I recall that old argument, its a "voluntary tax". Yeah well, nothing says "voluntary tax" like the IRS sticking a gun in your face and demanding it like a common street thug. 

And then statist progressive fucks resort to the ole "You are being unpatriotic if you don't willingly pay your taxes!"

You see..."patriotism" apparently has something to do with audits, wage garnishments, asset seizures, fines, penalties and compounding interest when its claimed you owe but not the reverse when they owe you...and of course...a 30,000 page tax code that even the IRS can't figure out.

bigkahuna's picture

The leftist knows no bounds when it comes to writing a check on his neighbor's bank account.

lie_to_me's picture


rickv404's picture

It may not be going away, but I don't see how it survives intact. It's simply too costly.

Eyes Opened's picture

For some reason , my first thought was...


JRobby's picture

It is an insolvent, cash devouring welfare payment to health insurance companies.

Endgame Napoleon's picture

That was funny: “Obamacare relief.” In states that did not accept the Medicaid expansion, the penalty works differently, but it is obscene to charge poor people for being uninsured and to force them to buy something unaffordable.

Great PhotoShop work—Obamacare, a doomed blimp.

Obamacare does not care about the over-taxed uninsured.

bkwaz4's picture

No, its obscene to print money to pay for unneeded welfare that you cant afford that covers even non citizens to buy their vote. There need to be incentives to become productive.

Fiscal Smegma's picture

ya mean Corn holed some folks


Duc888's picture



He already evicerated it with an EO months ago for fucks sake, do your homework and stop complaining.

JRobby's picture

Rapunzal got first post but doesn't have any idea what is going on. None, zip. 

wisehiney's picture

It was effectively scrapped this past March.

You can elect not to calculate penalty on your tax return now.

There will be no repercussions.

GUS100CORRINA's picture

Trump To Scrap Crucial Obamacare Insurer Subsidy

My response: Looks to me like Mr. President has figured out this "OBAMACARE" situation and the LEGISLATORS are squirming. Did you notice the picture of him signing this executive order today? Did you see who was standing behind him and too his left clapping?

Rand Paul and Ted Cruz.

The POLITICAL establishment just got screwed bigtime. Maybe time to short the Health Insurance Stocks. This development is going to HURT BIGTIME.

Bilderberg Member's picture

I tried to sign up for The Affordable Care Act insurance last week, I seriously didn't get past the first page of red tape, Its a complete joke...I'll try and find some short term alternative.  

Thalamus's picture

Stay away from doctors save your life

Endgame Napoleon's picture

They’ll cut back on $10-per-hour, unlicensed, momma-clique staff, paying them $9 per hour, which be better for the all-momma enployees in many areas of the insurance industry, in that it will increase their eligibility for free food and subsidized or free housing. They get the $3,337 to $6,269 child tax credits, either way, while licensed agents who were put out of work in droves by Obamacare do not get money from the state. They are [charged] for license renewals and continuing education every two years.

Many of them built up a clientele on straight commission with no benefits over years, and it was wiped away by Obamacare, which used mostly unlicensed “navigators,” not that health insurance is the only part of the industry hiring mostly unlicensed moms who have unearned income from spouses, child support checks or welfare and child tax credits for the salaried jobs with benefits.

Got The Wrong No's picture

Nice pick up. That went right over my head. 

JRobby's picture

Wailing morons posting here about "entitlements". Obliviocare transferred money from the US Treasury directly into health insurers and big pharma pockets, skimming $$$ illegally from other GOVT accounts to keep it all afloat. The level if fraudulent claims and subsidies is sickening. Corporate welfare scam.


Rapunzal's picture

Ok if this is true, that would be the only promise of Trumps election speeches that's effecting the little man ;)
No wonder the MSM is not reporting on that. But I don't recall any article on that inline either.

Endgame Napoleon's picture

Well, he canceled the TPP and is making some moves on NAFTA. It is not clear whether that will be a mere adjustment, a major overhaul or, better yet, a cancellation. Hillary would not have scrapped the TPP. But we want him to do more on stopping mass-scale, welfare-boosted immigration and ending illegal immigration. He and Melania did a good job on the hurricanes in Texas / Florida. That paper towel thing in PR turned out to be fake news. People asked him to throw them paper towels, jokingly, and the MSM made it a racial thing.

Yippie21's picture

Seriously?  How obtuse are you?  Trolling maybe..   Is this Jonah Goldberg?

JRobby's picture

The sheer weight of the "things you can't recall" could implode planets and plug a black hole.

MozartIII's picture

"If he doesn't scrap the tax penalty for not having health insurance, everything else doesn't matter. We need a choice to opt out of this scam."

He stoped enforcement!

='s Dead

jin187's picture

There are tons of ways around the individual mandate, especially if you live in a state that refused the Medicaid expansion. I tick half the boxes on my tax returns. You can claim anything from being Native American to religious reasons.

One of the first things Trump did when he got into office was to stop the IRS from enforcing the mandate, so check some boxes you're not totally uncomfortable with just in case, and dodge the penalty worry-free.

Cluster_Frak's picture

I wonder if Obama is now on Obamacare.

knukles's picture

SorosCare.  You never die, merely sleep intermittently between the feedings of innocent's blood.
He's not on ObamaCare

Now, if he were, he could tell us how fucking awesome it is, but he has no firsthand knowledge

More Fucking Democratic (Establishment) Hypocrisy


THORAX's picture

Your Soros Care imagery rocked! 

Ron_Mexico's picture
"You can deal with rockets and dreams But reality, what does it mean ? Ain't no damned thing said 'Cause Freddie's dead Hey, 'cause Freddie's dead . . . " Songwriters: Curtis Mayfield
Duc888's picture



Good.  I hope Trump continues to ERASE every single crumb of evidence that the Muslim usurper ever set foot in the White House.

847328_3527's picture

"These things happen in a big country. Democrats are just going to have to get used to it."

secretargentman's picture

Trump should appoint a special investigator to determine whether Obama was eligible to be President. If it turns out he wasn't, that undoes every single thing he did. Automatically. 

otschelnik's picture


Get those insurance behemoths off the feral gubmint teat.  Clear out the RINO's from congress.  Drain baby drain the swamp. 


JRobby's picture

Obama (Manchurian Kenyan) for prison 2018

wisehiney's picture

What I been waiting for.

Headlines be screaming blame on Trump tomorrow.

Just in time for 2018 premium announcements.

Grab em by the pussy Trump!

man from glad's picture

I like it. A big FU from Trump. And anything that accelerates the crash of 0bamacare is a good thing.

Shibumi2's picture