Following the decision by the President of the United States to sign an executive order that touches on the Affordable Care Act, pressure has now been transferred to the Congress which will have to act if they are to protect the consumer from soaring premiums. The executive order by the president ensures that the federal government does not make critical payments to insurance companies that provide the Obamacare. This has brought about the concerns about negotiations that will protect the government from a shutdown come to the end of the year. For starters, the move that was announced by the president on Thursday night has the ability of causing a lot of chaos in the insurance market. For instance, once the plan is implemented, many insurers will run away from the Affordable Care Act and its associated marketplace. At the same time, various consumers will be priced out while the federal government costs will rise. The announcement was made some few hours after the president said that he was encouraging lower-cost insurance policies that would discourage people from buying coverage from the Affordable Care Act. In his own words, the president said that he was in the process of convincing the Democrats to a negotiating table.
The president said that if the Democrats were smart people, they would sit down with him and discuss the issue. At the end of the day, they will be able to come up with a healthcare system that’s good for all Americans. While addressing the media, President Trump insisted that insurance companies are being made rich by the subsidies offered to them by the federal government. For starters, these subsidies are referred to as cost-sharing reduction payments. These payments are made to the insurance companies to take care of out-of-pocket expenses. This includes payments such as low-income customers’ co-payments and deductibles. The insurance companies would still offer these benefits even if the federal government pulled out. The only problem is that the premiums will have to go up. However, the decision to pull off the subsidies came as a surprise to Tennessee Republican Senator Lamar Alexander and Washington Democrat Senator Patty Murray. These two gentlemen had worked for months to come up with a plan that would see them extend the subsidies. Republicans in Congress remain divided on the issue. Some have some major concerns that ending the subsidies would lead to a backlash from some of their constituents.