Trump says money should go to people, not health insurers
WASHINGTON, Dec 8 (Reuters) – U.S. President Donald Trump criticized insurance companies on Monday, calling for funds to go directly to individuals rather than insurers, while Democrats are pushing for a three-year extension of the end of Affordable Care Act subsidies for health plans.
Trump made these comments during an event at the White House; While Senate Democrats are set to vote on extending Covid-era subsidies this week, the measure is unlikely to pass due to lack of support from Republicans.
Subsidies that help offset premium costs for plans, also known as Obamacare, are set to expire at the end of the year, potentially affecting up to 24 million people who depend on the program.
A recent survey by health research firm KFF found that nearly a quarter of Obamacare enrollees would give up insurance in 2026 if subsidies ended and premiums doubled. Most beneficiaries want Congress to expand subsidies, the survey found.
Republicans have promised Democrats a vote on health subsidies under a deal reached last month to end a record 43-day government shutdown. But GOP heavyweights, including U.S. Sen. Bill Cassidy of Louisiana, have advocated for an alternative proposal that focuses on directing funds to health savings accounts rather than expanding subsidies.
Cassidy, a physician who chairs the Senate Health, Education, Labor and Pensions Committee, argues that this approach gives patients more control over their healthcare spending.
Critics say the proposal could disproportionately benefit high-income individuals while forcing lower-income Americans to turn to short-term or high-deductible insurance plans.
They warn that many low-income consumers who currently pay little or nothing for insurance coverage could face significant new out-of-pocket costs if subsidies end. Currently, no Obamacare participant pays more than 8.5 percent of their income in premiums, but that cap will expire unless lawmakers extend subsidies.
(Reporting by Nandita Bose; Writing by Ahmed Aboulenein and Jasper Ward; Editing by Katharine Jackson and Bill Berkrot)
