Trump to halt subsidies to health insurers

FILE: President Donald Trump (Photo: Donald J trump/Facebook)

WASHINGTON — President Donald Trump will “immediately” halt payments to insurers under the Obama-era health care law he has been trying to unravel for months.

The Department of Health and Human Services made the announcement in a statement late Thursday night. Acting HHS Secretary Eric Hargan and Medicare administrator Seema Verma say, “We will discontinue these payments immediately.

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In a separate statement, the White House said the government cannot legally continue to pay the so-called cost-sharing subsidies because they lack a formal authorization by Congress.

The subsidies help lower copays and deductibles for people with modest incomes.

The top two Democrats in Congress say the payments are legal and they warn Trump “will pay the price” for disrupting coverage.