The Congressional Budget Office (CBO) released a new analysis today of the impact on health insurance premiums should President Trump follow through with threats to stop funding federal subsidies for Obamacare. As CNBC reports:
Obamacare premiums for the most popular types of plans will sharply increase — by 20 percent next year, and by 25 percent in 2020 — if President Donald Trump ends key federal subsidies to the program, the Congressional Budget Office warned Tuesday in a new analysis.
The finding is certain to ratchet up pressure on Trump, and his Republican allies in Congress, to continue funding the payments to insurers, which reimburse them for discounts offered most Obamacare customers in their out-of-pocket health costs.
The CBO estimated there would be 1 million more Americans without health insurance next year than there are now as a result of such a decision by Trump to end the so-called cost-sharing reimbursements.
But, by 2020, there actually would be 1 million fewer uninsured Americans because of that decision, the report said.
On top of that, killing those payments to insurers would result in an extra $194 billion added to the federal deficit, the CBO report said
While less money would be spent on the CSR payments, the government as a result would be required to spend even more money to offset the spike in premiums borne by most Obamacare customers, CBO said.
Congressional Republican plans to repeal Obamacare have consistently been shot full of holes by the CBO in recent months, and this new analysis continues that trend.