Socialism BTFO!
Obamacare 'Explosion' Could Come Soon… Why? Because Obamacare Depends On Taxpayer Bailouts!
After a stunning 'defeat' last week, delivered at the hands of his own party no less, Trump took to twitter to predict the imminent 'explosion' of Obamacare.
"ObamaCare will explode and we will all get together and piece together a great healthcare plan for THE PEOPLE. Do not worry!"
— Donald J. Trump (@realDonaldTrump) March 25, 2017
"The Democrats will make a deal with me on healthcare as soon as ObamaCare folds - not long. Do not worry, we are in very good shape!"
— Donald J. Trump (@realDonaldTrump) March 28, 2017
As it turns out, that 'explosion' could come faster than anyone really expects as legislators and health insurers have to make several critical decisions about the 2018 plan year over the next 2 months which could seal Obamacare's fate.
As the Atlanta Journal Constitution points out today, the Trump administration has until May 22nd to decide whether they will continue to pursue the Obama administration's appeal to provide subsidies to insurers who participate in the federal exchanges.
Of course, any decision to remove those subsidies would likely result in yet another massive round of premium hikes and further withdrawals from the already crippled exchanges where an astounding number of counties across the country have already been cut to just 1 health insurance provider. And, as we've pointed out before, higher rates = lower participation = deterioration of risk pool = higher rates….and the cycle just repeats until it eventually collapses!
As background, in 2014, House Republicans sued the Obama administration over the constitutionality of the cost-sharing reduction payments (a.k.a. "taxpayer funded healthcare subsidies"), which had not been appropriated by Congress. Republicans won the initial lawsuit but the Obama administration subsequently appealed and now Trump's administration can decide whether to pursue the appeal or not.
The Trump administration and House lawmakers have to report to the judge this spring. If the Trump administration drops the appeal, it would mean the subsidies would stop being paid — a huge blow to the marketplaces and millions of people. If lawmakers wanted the payments to continue, they would have to find a way to fund them. One opportunity for that is coming up fast, the continuing resolution that must be passed by April 28. If the Trump administration continues the lawsuit, it will be in the odd position of fighting its own party.
The CBO estimates the payments would total roughly $10 billion in 2018.
As we've noted before, several large insurers, including UnitedHealth Group and Aetna, have already made the decision to exit Obamacare due to financial losses. Now, Molina Healthcare is also pondering whether it would be able to continue to participate in the absence of federal subsidies.
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zerohedge.com