Obamacare Premium Hikes Could Double in California If Trump Ends Subsidies
- Administration expected to decide on insurer subsidies soon
- Health plans have pulled back from ACA amid uncertainty
Why Insurers Are Quitting Obamacare
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Health insurers that sell Obamacare plans in California say they’ll double premium increases for some plans next year if President Donald Trump follows through on a threat to cut off subsidies under the law.
Insurers requested a 12.5 percent rate increase on average for 2018 Obamacare plans, the state’s Covered California exchange said in a statement Tuesday. Trump, however, has threatened to stop paying what are known as cost-sharing-reduction subsidies -- which insurers get to help lower-income people afford to use their plans. If that happens, insurers would increase rates by another 12.4 percent on mid-level plans, the state said.