Health care premiums to soar if Trump ends subsidies

By Michael Hernandez

WASHINGTON (AA) - Should President Donald Trump remove federal subsidies for the Affordable Care Act, many premiums will skyrocket 20 percent next year, the Congressional Budget Office (CBO) said Tuesday.

Premiums for popular health care plans would inflate to 25 percent by 2020 while the federal deficit would increase by $194 billion in the next decade if Trump follows through on his threat to force Democrats to negotiate a new health care law.

The deficit boom would be fueled by an increase in other payments the government would be forced to spend, the nonpartisan CBO said.

Still, by 2020 the number of those lacking insurance would be "slightly lower" if Trump ends the subsidies, according to the CBO.

Known as cost-sharing reductions or "extra savings" on the health care marketplace, the subsidies are paid to insurance companies to help cover costs for low-income consumers. They are estimated to run about $7 billion this year.

The next payments are due next week.

Trump and his party have led hitherto futile efforts to roll back Obamacare and replace it with a plan of their own.

The American president has repeatedly derided congressional Republicans for failure to get a replacement plan through the legislature, most recently taking aim at Senate Majority Mitch McConnell who was unable to broker a deal between moderate and far-right caucus members, effectively killing the effort, for now.

“If a new HealthCare Bill is not approved quickly, BAILOUTS for Insurance Companies and BAILOUTS for Members of Congress will end very soon!” Trump threatened on Twitter shortly before Congress left for its summer recess.