The New York Times makes an important point about what would happen if the Trump administration stops paying for the Affordable Care Act's cost-sharing reduction subsidies: It hurts the middle class more than low-income customers. Here's why:
- The subsidies are meant for low-income people. Even if insurers stop getting reimbursed for them, they still have to pay them.
- But insurers say they'll raise their premiums to make up for the losses. That wouldn't hurt low-income customers, because they also get tax credits that would cover much of the higher premiums.
- But middle-class customers — who earn too much to qualify for those tax credits — would have to pay the higher premiums without any financial help.
Where it stands: The Trump administration made the June payments, but hasn't made any promises beyond that. And Congress is still debating whether to fund them.