As the healthcare law’s rollout ramps up, Democrats are demanding a full repeal of the law’s subsidies that pay insurance companies to offer coverage.
| AP Photo Trump, Pence announce new tax breaks for insurance companies article The president’s proposal to boost premiums on plans sold through the Affordable Care Act’s insurance marketplaces and reduce tax credits for people buying plans on the federal exchange has been criticized by Democrats, and it faces strong resistance from Republicans who argue it will only drive up premiums and raise costs for those who need it most.
Trump has proposed a variety of changes to the law, including lowering the tax rates on most households earning more than $200,000 to 25% from 39.6%.
He has also suggested the government should help people buy insurance on the federally run exchanges, but has not proposed specific changes.
Democrats have called the proposal a giveaway to insurance companies and have urged Trump to repeal the subsidies and eliminate tax credits.
Democrats and some Republicans have been pushing for a tax break to help those who buy insurance through the exchanges to lower premiums and lower deductibles.
They have proposed an alternative proposal to give states greater flexibility to decide how to administer the law.
The White House on Thursday announced new tax incentives to help insurance companies sell insurance on its federally run health insurance exchanges.
As of April 1, the subsidies will be worth about $2,700 for a family of four, according to the Kaiser Family Foundation.
Under the Trump plan, insurance companies would be able to offer insurance for $75 per month for people making between $50,000 and $100,000 a year, and $150 per month to people earning between $100 and $200 a year.
The subsidies would also be available to anyone who buys insurance through a federal health insurance exchange.
Republicans argue the plan would help people who are already insured, while Democrats say it would only help people making more than the $200 threshold.