May 19, 2017

Trump doesn't want to fund Affordable Care Act insurer subsidies

(Susan Walsh / AP)

President Trump has told advisers he wants to stop paying Affordable Care Act insurer subsidies, Politico reports. Without funding from the administration, exchanges could fall into chaos as insurers raise premiums or pull out of the markets. A lawsuit, brought by the House against the Obama administration, over the legality of the payments is currently pending.

Trump has said he thinks ending the payments will force Democrats to negotiate an ACA replacement. But some of his aides are worried Republicans would be blamed for intense market instability, as insurers may pull out or drastically raise premiums in response to not being paid.

What we're watching: The administration and the House are due for a check-in on the lawsuit on Monday. The case could continue to be delayed and appealed, or the administration could drop the case — meaning funding would stop.

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