President Trump plans to end an estimated $7 billion in cost sharing reduction (CSR) subsidy payments to health insurers selling ObamaCare coverage, Politico reported Thursday, citing two sources familiar with the matter.
Such a move would cause a significant spike in premium prices, throwing the ObamaCare marketplace into chaos.
The Congressional Budget Office (CBO) said if the CSR payments were halted, then about 1 million Americans would be uninsured next year, with premium prices increasing by about 20 percent for ObamaCare plans.
CBO also said halting the CSR payments would increase the federal deficit by $194 billion through 2026.
The Hill added:
The payments help low-income people afford co-pays, deductibles and other out-of-pocket costs associated with health-insurance policies. Insurers have called the payments critical, saying that without them, they would have to massively increase premiums or exit the individual market.
Many insurers have already priced their plans for the coming open enrollment period, which begins Nov. 1.
On Thursday, Trump signed an executive order to undermine ObamaCare, saying the order is “starting that process” to repeal the law.
It will be the “first steps to providing millions of Americans with ObamaCare relief,” Trump said.