Several states have expressed concerns regarding the US President's cutback of Obamacare. They argue that the untimely disruption would end the coverage for millions. Many low-income citizens would be unable to purchase coverage for their families.
Trump threatens to dismantle Obamacare
Donald Trump threatens to end the billions of dollars in payments to health insurers. His action could inflict disruption on the Affordable Care Act, with new enrollment scheduled to start in two weeks. The sudden change is playing out in several states, but some state regulators had ignored the president’s threat.
The insurers access to federal funding for the 2018 period will end, leaving millions without health coverage.
According to state officials, delaying the enrollment process starting on November 1, 2017, could add higher premiums to the health care cost. However, this would make up for the abrupt loss of federal funding. The insurance exchanges and enrollment organizations said Trump's action would disrupt the fifth year sign-up period. They have also indicated that it has sown widespread confusion among consumers.
Since last summer the White House has taken steps to dismantle the Obama health care act. The US President's action would suppress the number of Americans insured under Obamacare. The Chief Executive officer said many concerned consumers had called its call center in recent days.
He also stated that many people expressed confusion and wanted to know whether they can still get affordable health care coverage.
Americans set to lose health care coverage
According to Covered California, the president’s action will mostly affect low-income families, who depend on Obamacare. The estimation of payments received from the government for the last three months of 2017 is $188 million; insurers can compound the damage themselves.
The deadline for insurers to sign government contracts for 2018 coverage is on Thursday. But there is a clause in the contracts that allows insurers to pull out within 90 days if federal funding stops. The number of companies selling ACA coverage has decreased in the past two years. However, a few counties that have only a single insurer had seen an increase in insurance exchanges.
Meanwhile, analysts have warned that dismantling the Affordable Care Act will only make it harder for states to attract insurers. According to Larry Levitt, stated that most insurers would exit the ACA marketplace in 2018. Levitt had also warned that President Trump's quest to fulfill one of his campaign promises would leave many Americans without affordable health care coverage.
