CBO: Trump Threat To Cut Obamacare Subsidies Would Raise Premiums 25%

President Donald Trump speak to members of the media regarding the on going situation in Charlottesville, Va., Saturday, Aug. 12, 2017 at Trump National Golf Club in Bedminister, N.J. (AP Photo/Pablo Martinez Monsivais)
President Donald Trump speak to members of the media regarding the on going situation in Charlottesville, Va., Saturday, Aug. 12, 2017 at Trump National Golf Club in Bedminister, N.J. (AP Photo/Pablo Martinez Monsivais)
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August 15, 2017 2:19 p.m.

The non-partisan Congressional Budget Office released a report on Tuesday evaluating the potential impact of the Trump administration making good on a repeated threat to cut off Obamacare’s cost-sharing reduction (CSR) payments to insurers.

The CBO found that the move would cause premiums for people whose care is supported by the payments to climb 20 percent higher by 2018 and 25 percent higher by 2020. They also estimate that the move would increase the federal deficit by $194 billion dollars by 2026, and it would lead to 5 percent of the U.S. population having no access to a non-group insurer.

The deficit would increase, the CBO explained, because insurers would compensate for the lost subsidies by raising premiums across the board, forcing more people to depend on government tax credits.

Read the full report below:

 

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