The president tweeted Saturday that he’s ‘very proud’ of executive order, despite analysts, politicians and others saying millions of people would in fact suffer

This article is more than 2 years old

This article is more than 2 years old

Donald Trump on Saturday heralded his latest moves to undermine Barack Obama’s signature healthcare law, tweeting that “millions of people” would benefit from his executive order on access to cheaper insurance and his scrapping of federal subsidies.

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Analysts, physician groups, state attorneys general and Trump’s political opponents disputed the president’s views and said millions of people would in fact suffer, because his actions threaten to boost premiums and rattle insurance markets under the Affordable Care Act (ACA).

An analysis by the Associated Press showed that nearly 70% of those benefiting from the federal subsidies live in states Trump won last November. One Floridian interviewed by the AP said Trump’s cut would be “a death sentence” for some.

Trump’s moves could also deepen strife among Republicans in Congress, where efforts to shred the ACA – popularly known as Obamacare – have failed embarrassingly.

The executive order, signed on Thursday, expands access to cheaper and less comprehensive insurance, allowing small businesses to band together to buy plans for employees offering similar coverage to that offered by bigger companies. Experts say such plans may not in fact cover the same range of health problems as those offered by larger insurers, and could result in coverage becoming more expensive.

People buying such “association health plans” may “get very nasty surprises”, Linda Blumberg, an expert at the Urban Institute, told the Guardian. “It can be very problematic.”

Under the ACA, federal subsidies are paid to companies to ensure lower healthcare costs for low- and middle-income earners. Following the announcement of the cut late on Thursday, the White House said the government could not legally continue to pay the subsidies because they lack formal authorization by Congress.

On Saturday, Trump tweeted: “Health insurance stocks, which have gone through the roof during the Obamacare years, plunged yesterday after I ended their Dems windfall!



“Very proud of my executive order which will allow greatly expanded access and far lower costs for healthcare. Millions of people benefit!”

Democrats in Congress promised to press for a bipartisan deal to restore the subsidies by year’s end. On Friday, Senate minority leader Chuck Schumer said “threats and bullying” from Trump would not force Democrats to repeal the ACA, and said voters would blame Republicans for the pain of Trump’s decisions.

Blocking subsidies would cause higher premiums and prompt some insurers to stop selling policies, Schumer said, adding that people “know full well which party is doing it”.

Chris Murphy, a senator from Connecticut, tweeted: “Trump’s decision to stop ACA payments is nuclear grade bananas … that sets the entire health system on fire. My god.”

Nearly 20 states filed suit over the subsidies decision. Attorneys general from California, Connecticut, Kentucky, Massachusetts and New York were among those announcing on Friday that they had filed the lawsuit in federal court in California.



The attorneys general said Trump was not following federal law in ending a legally mandated system that was already operating. Connecticut attorney general George Jepsen said Trump’s action would raise prices enough that healthier people would flee insurance markets, resulting in higher costs for those who remained.

Six physicians’ groups condemned the move. Their statement issued on Friday called on Congress to act immediately to restore the payments and prevent “dramatic, if not catastrophic, increases in premiums across the country” and millions of Americans losing coverage.

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The groups represent more than 560,000 US doctors and medical students. They are the American Academy of Family Physicians, the American Academy of Pediatrics, the American College of Physicians, the American Congress of Obstetricians and Gynecologists, the American Osteopathic Association and the American Psychiatric Association.

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The Associated Press analysis considered 2017 enrollment data from the US Centers for Medicare and Medicaid Services. It found that an estimated four million people were benefiting from the cost-sharing subsidies in the 30 states Trump carried in the 2016 election. Of the 10 states with the highest percentage of consumers benefiting from cost-sharing, all but one – Massachusetts – went for Trump.

No state has more people benefitting from the subsidies than Florida, a key swing state which went for Trump. More than one million Floridians benefit from cost-sharing subsidies under the ACA.

Sherry Riggs, a barber from Fort Pierce, told the AP the cuts “probably for some people … would be a death sentence”.

“I think it’s kind of a tragic decision on the president’s part,” she said. “It scares me because I don’t think I’ll be able to afford it next year.”