The president of the United States, Donald Trump, has planned to stop payments to insurers immediately under the Affordable Care Act. This is considered to be a major blow to Obamacare which is most likely to draw a legal challenge. The president has used this overnight decision to increase the pressure on the Democrats to negotiate a fix for the collapse of the health care law. Donald Trump had tweeted on Friday that Obamacare is collapsing and a huge amount of subsidy of their pet insurance companies has stopped. He also mentioned that the Democrats should call him for a fix. In addition to this, the president said that Obamacare is a completely broken mess and is now slowly & steadily in the process of giving the United States the great health care that it actually deserves.
The Department of Justice has taken very rapid action and has sent notification to a federal appeals court in Washington DC in connection with a related lawsuit that an upcoming payment scheduled on the 18th of October will not occur. This particular decision is the latest effort in the president's bid for the ultimate repeal and replacement of Obamacare which is considered to be the signature legislation of Trump's White House predecessor. The White House had clearly mentioned in a statement that the Department of Health and Human Services has determined that there is no appropriation for so-called cost-sharing reduction payments to insurers under the law of Obamacare. The acting HHS Secretary Eric Hargan and Medicare administrator Seema Verma have declared that they will be stopping the payments immediately.
The decision of Donald Trump was expected to rattle insurance marketplaces that are already unsteady. Previously, the president had threatened to discontinue the payments which would help in the reduction of health insurance co-pays and deductibles for people lying in the middle income group but it still remains under the cover of a legal cloud. As reported by the Wall Street Journal, Donald Trump has told at least one of the lawmakers that the payment might continue if a bipartisan deal is reached on health care. This action from the president is very likely to trigger a lawsuit from the state attorneys general who contended the subsidies to the insurers are completely approved by federal law. After the decision of the president was completely disclosed, the leading Democrats in Congress wasted no time and began to criticize the plan.