President Trump is expected to announce on Friday that he will end subsidy payments to insurers who rely on the funding to reduce out-of-pocket costs for millions of low-income ObamaCare customers, two people with knowledge of the matter told Politico.
The subsidies are estimated to cost $7 billion this year, and under the law, insurers still must provide cheaper rates to members even if they no longer receive federal funding. Because Congress has not taken steps to appropriate funding for the subsidies, usually paid out by the executive branch, they may stop immediately. Over the last several months, Trump has threatened to cut off the payments, which he called a "bailout" for insurance companies, and insurers have already raised prices to prepare for this possibility. Earlier in the day, Trump signed an executive order that lets customers buy short-term policies.