It did not take long for democrats to respond to Trump’s executive order halting key subsidies known as Cost-Sharing Reductions or CSRs to insurers.
On Friday, just hours after the executive order was signed, Democratic attorneys general from eighteen states as well as Washington D. C., sued President Trump’s administration to stop him from scrapping a critical component of Obamacare – insurer subsidies that allow millions of low-income people pay medical expenses, even as Trump invited Democratic leaders to negotiate a deal. The states include: California, Connecticut, Delaware, Kentucky, Illinois, Iowa, Maryland, Massachusetts, Minnesota, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia and Washington state.
The suit follows the administration’s announced plans to end the payments next week; Trump said he would dismantle Obamacare ‘step by step.’ His latest action raised concerns about chaos in insurance markets. Frustrated by the failure of Republicans who control both houses of Congress to repeal and replace Obamacare, Trump’s action took aim at a critical element of Obama’s signature 2010 law. ‘As far as the subsidies are concerned, I don’t want to make the insurance companies rich,’ Trump told reporters at the White House. ‘They’re making a fortune by getting that kind of money.’
On Saturday morning, Trump doubled down, tweeting that “Health Insurance stocks, which have gone through the roof during the ObamaCare years, plunged yesterday after I ended their Dems windfall!”
Health Insurance stocks, which have gone through the roof during the ObamaCare years, plunged yesterday after I ended their Dems windfall!
— Donald J. Trump (@realDonaldTrump) October 14, 2017
This post was published at Zero Hedge on Oct 14, 2017.