Premiums for the most popular health insurance plans would shoot up 20 percent next year, and federal budget deficits would increase by $194 billion in the coming decade, if President Trump carried out his threat to end certain subsidies paid to insurance companies under the Affordable Care Act, the Congressional Budget Office said Tuesday.Related: Gov. Asa Hutchinson's plan to throw 60,000 people off the expanded Medicaid private option system in Arkansas is being sold under the cover that most of those who lose coverage when the income qualifying level is lowered or because of work requirements will enjoy federal subsidies under the marketplace insurance program. Maybe not, if Trump has his way. (Plus, most serious analysts believe the subsidies won't be sufficient to enable the working poor thrown off coverage by Hutchinson to purchase insurance. Many, if not most, will rejoin the ranks of the uninsured.)
The subsidies reimburse insurers for reducing deductibles, co-payments and other out-of-pocket costs that low-income people pay when they visit doctors, fill prescriptions or receive care in hospitals.