The CBO projection, which was released on Tuesday, also estimated that terminating the subsidy payments would increase the federal deficit by $194bn by 2026. The payments reimburse insurance companies for covering some low-income enrollees. For months, Trump has dangled the possibility that he may stop the payments, which he calls “bailouts for insurance companies”, as a tactic to force Democrats to the negotiating table. But the uncertainty has made it difficult for the insurance companies, which must set their rates for 2018 within the next few weeks. The CBO analysis assumes that the Trump administration will make a decision by 31 August to stop the payments at the end of the year.

Source: The Guardian August 15, 2017 22:18 UTC