Health Care Experts Explain How Killing Obamacare Subs Will Actually Lower Premiums
After President Donald Trump recently halted Obamacare subsidies for poor and low-income Americans, many in the media reported that the action will result in more expensive health insurance premiums for millions of consumers who are already struggling to make ends meet. This characterization, however, fails to provide key context that could actually mean lower premiums for Americans with individual health insurance plans.
According to a recent study from theFreelancers Union and Upwork, a record 36 percent of Americans now work as freelancers, meaning that they are not eligible for employer-sponsored health insurance plans offering much lower premiums for consumers. This means that roughly 57.3 million Americans minus the number of those covered under health insurance plans offered by their spouse?s employer-sponsored plans are required under the Affordable Care Act to obtain individualized health insurance coverage or pay a penalty.
An estimated eight in ten consumers in the individual market are eligible for taxpayer-funded health insurance plan subsidies. Trump, however, recently halted billions of dollars in health insurance subsidies, because he said they only prop up insurers.
The administration also argues that the subsidies are illegal since the funds were never appropriated by Congress.
The move will not largely affect the eight in ten Americans who are eligible for the premium subsidies, since health insurers are still required to subsidize plans for low-income consumers even without taxpayer-assistance. Trump?s move will only affect the remaining two in ten Americans on the individual market who are not eligible for subsidies because they earn too much, CNN reports.
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