Trump wants to declare war on the health insurance industry
President Trump is spoiling for war against the health insurance industry, and his administration made two threats over the weekend that insurers say would wreck the markets:
- On Twitter, the President threatened to end so-called "bailouts" for health insurance companies — referring to payments the government makes to insurers so they can make insurance less costly for low-income people (as they're required to do).
- Health and Human Services secretary Tom Price suggested on ABC's "This Week" that he might make more people exempt from the requirement to buy health insurance. Insurers say this could make premiums even costlier.
Why this matters: It may sound like good politics for a populist Republican president to end "bailouts" for big bad insurance companies, but the potential consequences are alarming. If Trump follows through on his Twitter-threat, insurers would dramatically raise prices – shredding the final layers of duct tape holding together the ACA insurance markets.