Government Healthcare Policy, Business and Technology

Trump's threats to end cost-sharing subsidies could lead to premium hikes and litigation

Modern Healthcare: Even though Senate Republicans' push to repeal the Affordable Care Act fizzled out last week, health insurers are still grappling with uncertainty over whether the federal government will continue to fund crucial subsidies that help low-income Americans pay for health coverage. Insurers and lobbying groups have warned over the last few months that premiums will increase if the cost-sharing reduction subsidies go unfunded in 2018. Now the Trump administration could also face new litigation if it fails to make the subsidy payments, as President Donald Trump has repeatedly threatened to do.On Tuesday, California's insurance exchange—arguably one of the most successful ACA marketplaces—announced its individual ACA rates will go up 12.5% on average in 2018.

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