What’s new with the 22 million Americans who may be impacted by the expiration Obamacare subsidies? Earlier this month, a Miami insurance agency was featured.
This fall’s record-breaking government shutdown was sparked by a dispute over expired Obamacare subsidies, but it concluded without a solution to this important budgetary issue that impacts an estimated 22 million Americans.
Although it’s unclear when it will be formally released, President Donald Trump is currently working on a solution to address the issue. The debut of Trump’s healthcare plan was delayed, according to several published stories on Monday afternoon, despite earlier claims that it may happen as soon as Monday.
Here are some important expectations.
— Obamacare subsidies are extended for two years: A Politico report citing unnamed sources said that a two-year extension of Obamacare subsidies, which are set to expire on December 31, would be part of Trump’s plan. However, a report from MS NOW, the news organization formerly known as MSNBC, claims that congressional Republicans have resisted the president’s support for the expiring subsidies, which has contributed to the postponement of the scheduled unveiling of his healthcare package.
— A step toward directly distributing funds to individuals: According to a CNN story, Trump’s proposal is expected to include a choice for certain customers who select a less expensive Obamacare plan to transfer federal funds into a health savings account, or HSA. The president has advocated for “SENDING THE MONEY DIRECTLY BACK TO THE PEOPLE,” or delivering federal healthcare cash directly to people.
— Every Obamacare enrollee pays a monthly premium of some kind: According to an MS NOW story, “zero-premium” subsidies are anticipated to be eliminated under the president’s “Healthcare Price Cuts Act”. This implies that all enrollees in plans provided under Obamacare, officially known as the Affordable Care Act, or ACA, will be required to pay some kind of monthly premium.
— New income limits: According to Politico’s report, subsidies would only be available to people who earn up to 700% of the federal poverty level, which is in keeping with what a bipartisan group of senators has discussed.
Karoline Leavitt, the White House press secretary, warned reporters Monday afternoon that the information that has been reported thus far about the plan may not be the same as what is ultimately made public. “Sometimes you report things, and then President Trump comes out with an announcement, and those things are not always true from what you hear from sources inside the building,” she told reporters assembled outside the White House.
However, she also underlined that the White House is in fact developing a proposal for healthcare.
“I’ll tell you, there is a lot of heated and frequent talk about healthcare inside the West Wing. The president is actively participating in these discussions at the moment and is committed to presenting a healthcare plan that would improve the system and lower consumer prices, Leavitt stated. “As for the details of those discussions, I’ll let the president speak for himself.”
Until Trump “makes an announcement himself, any reporting about the Administration’s healthcare positions is mere speculation,” White House spokesman Kush Desai responded in an email to MarketWatch’s request for comment Monday morning.
As the Senate prepares to vote on the Obamacare subsidies by the second week of December, there is a lot of potential news regarding Trump’s proposal. After their Republican colleagues pledged to vote in favor of reopening the government, eight Senate Democrats consented.
According to a group of Capital Alpha Partners analysts led by Kim Monk, Trump’s proposal might garner Democratic votes in the Senate, but it’s uncertain if it could receive 60 votes. Stronger Republican resistance in the House is another obstacle, according to a note from the analysts, and some Senate Republicans just do not want to take a vote that maintains the fundamental framework of Obamacare.
“Demonstrating these challenges, there are already reports that the [White House] event may be delayed due to pushback from Congressional Republicans, so stay tuned,” the team from Capital Alpha stated.
The voices of other analysts have been more upbeat.
According to Chris Niebuhr, a senior research analyst at Beacon Policy Advisors, a major negotiator for Senate Democrats said that revisions for income caps and for zero-dollar-premium plans would be acceptable, suggesting that there is likely to be enough support for Trump’s plan in the Senate. Senate Democrats may object to Obamacare plans’ limitations on abortion coverage, but it’s unclear at this time if Trump’s plan would impose such limitations, Niebuhr wrote in a letter on Monday morning.
“The Republican-controlled House is likely to be the biggest obstacle to an extension for the expiring Obamacare subsidies this year, and there will likely be resistance from GOP conservatives, but most House Republicans can be expected to fall in line behind Trump,” Niebuhr continued.
At approximately 4 p.m. Eastern on Monday, the president was scheduled to sign an executive order, but it had nothing to do with healthcare; rather, it dealt with initiating the process of designating specific Muslim Brotherhood chapters as specific categories of terrorist organizations.
