President Trump just ended Obamacare welfare payments, gutting the law
Ending the payments – subsidies – brings us back to a rule of law. The payments could only be made by Barack Obama if Congress had approved them but they didn’t. A court scolded Obama for defying the Congress which didn’t even slow the constitutional scholar down.
Obama put insurance company subsidies in place to prop up the failing law and lower the rising premiums. The effort deceived the public about the law’s financial solvency.
Sarah Huckabee Sanders issued a statement late Thursday saying that the administration has completed its evaluation of “cost sharing” wealth redistribution payments the Obama regime had been making to insurance exchanges. The Trump administration had continued them as they were being evaluated and has now determined they are illegal.
Congress had the authority, not the Executive branch, and they specifically denied the payments. A court rebuked Obama after he defied Congress and made the corporate welfare payments anyway. The unconstitutionality of it made no difference to the former president.
Sanders’ statement said the Justice Department has concluded that a judge’s ruling is correct, that there is no valid legal basis for the Obamacare subsidy payments to be made.
She wrote, “The bailout of insurance companies through these unlawful payments is yet another example of how the previous administration abused taxpayer dollars and skirted the law to prop up a broken system.”
She continued, “Congress needs to repeal and replace the disastrous Obamacare law and provide real relief to the American people.”
The statement did not include any information about whether there would be a phase-out period, but a Justice Department statement said the agencies responsible for them “have decided not to spend money to fund those payments.”.
The “cost-sharing” payments are American taxpayers’ money taken out of the treasury and paid directly to insurance companies to compensate for the non-payments of others. It is one of the features of Obamacare that inculcates the concept of Marxist redistribution directly into healthcare.
Some in Congress have been afraid to act because some recipients have grown to like other people paying for their healthcare. Remember, the government has no money, just what it pilfers from the taxpayers.
“The bailout of insurance companies through these unlawful payments is yet another example of how the previous administration abused taxpayer dollars and skirted the law to prop up a broken system,” Mrs. Sanders said. “Congress needs to repeal and replace the disastrous Obamacare law and provide real relief to the American people.”
Without this healthcare welfare to insurance companies, the premiums for Obamacare will go up. They were artificially supported by the government and people who were not subsidized. About 80% of the people on Obamacare are on subsidies and the rest get to pay for them along with the government, but the government has pulled out. This will force a lot of people out of the exchanges as they are called.
Democrat Congressmen and the media will put the blame on the President as many will become uninsured even though the blame lies with the construct of the bill which places an unfair burden on the taxpayer. The government has no money and shouldn’t be subsidizing anything without the permission of the taxpayer. It is taxation without representation.
Cancelling these payments to insurance companies is equivalent to ripping a band aid off a wound that won’t heal.
The payments cost $7 billion a year and rising. The system is unsustainable. The CBO claims it will increase deficit spending because the government still pays through a different part of the law that doles out tax credits (welfare by a different name). They need to go too.
Insurance companies will have to compete instead of feeding off the taxpayers.
The President is zeroing out all of Obama’s illegal rules, memos, and executive orders. This is one. He is merely following the law.
“This administration is committed to the rule of law, and a fundamental premise is that Congress holds the power of the purse. We will not usurp its authority,” said Justice Department spokeswoman Sarah Isgur Flores.
Also this week, President Trump is allowing for cheaper, less regulated health plans with an executive order that permits the sale of health insurance plans across state borders if they are exempt from some Affordable Care Act – Obamacare – coverage rules.
Health insurance companies will be allowed to form plans that people actually want to buy. People won’t have to pay for things they don’t need or want.
The President did say he would go it alone if Congress failed to repeal the health law. He is making good on his campaign promise which he has also repeated as President.
Democrat politicians and their media say the President will now be blamed for the rise in premiums.