Until now, The federal government provided financial help to working class people who earn too much to qualify for state Medicaid programs but earn too little to pay for the cost of health insurance. In this case the federal government pays 20% of the cost of coverage directly to insurers to cut premium costs. The president vowed to cut payments for social programs and increase spending on military weapons as part of his agenda. Many or most covered under this financial aid program are expected to lose coverage.
Today, Friday October 13, President Trump will announce that the federal government will discontinue the $7 Billion per year aid to help lower income working class people purchase health insurance. Apparently the majority of lawmakers in both parties oppose the president on this action according to the news reports I’ve read. Some call the move cruel and heartless. The Congressional Budget Office estimated that ending the cost-sharing payments would increase the budget deficit by $194 billion over the next decade as subsidy outlays jump according to Bloomberg.
Many of the working class recipients who will lose coverage are Republicans and were Trump voters last year so this appears to be a dangerous act by the president. Some of the recipients, noting the Friday October 13 date are calling this a real nightmare. I expect that there will be strong backlash against Republicans for this unpopular move.
Pennsylvania is among a number of states that will sue the federal government to get more financial help for low income working class people according to Attorney General Josh Shapiro.