Reactions are mixed about the implications – and any possiblepolitical fallout – of President Trump’s announcement last weekthat the administration would end the Affordable Care Act’scost-sharing reduction payments to insurers, aswell as his executive order to ease restrictions on what types of health plansinsurers can offer on the exchanges.

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Scott Behrens, vice president, ERISA compliance attorney at Lockton ComplianceServices, writes that ending the CSR payments could further destabilizethe individual health insurance market, “though it might alsoinject additional urgency in Congress to develop and passlegislation that creates long term stability.”

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“The announcement explains that the administration believescontinuing CSRs without an express authorization from Congress isunconstitutional,” Behrens writes. “In other words, the TrumpAdministration is telling Congress ‘the ball is in yourcourt.’”

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Democrats in Congress might have more leverage in any deal thatshores up the markets, he writes, since polls show that themajority of Americans might blame Republicans if Trump’s ordersexacerbate the ACA’s problems. If a bipartisan solution tostabilize the individual market cannot be reached, pressure maybuild for Republicans to support the latest repeal-and-replace proposal by SenatorsLindsey Graham (R-SC) and Bill Cassidy (R-LA).

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The GOP will have to do something to protect its support base --people in the states that went for Trump over Democrat HillaryClinton in the election might be harmed the most from his executiveorders, according to an Associated Press article posted on ABC News. Nearly 70 percent of those benefiting from theso-called cost-sharing subsidies live in states Trump won lastNovember.

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“The number underscores the political risk for Trump and hisparty, which could end up owning the blame for increased costs andchaos in the insurance marketplace,” AP writes.

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However, some Republicans are confident that voters will welcomeshaking up the system in an effort to find bettersolutions. “We cannot continue the status quo,” Rep. MarkWalker (R., N.C.) tells the AP.

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The Wall Street Journal also writes that Trump’s actions areseen by some as a negotiating tactic to pressure Republicans andDemocrats to reach a deal, citing the president’s comment onFriday: “If the Democratic leaders could come over to the WhiteHouse ... we’ll negotiate some deal that’s good for everybody.”

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Republicans are split over funding the CSRs payments, but enoughmight join Democrats to pass a bipartisan deal in the works toguarantee the insurer payments, people familiar with the talks tellthe WSJ. The deal, led by Sens. Lamar Alexander (R., Tenn.) andPatty Murray (D., Wash.), would authorize the payments Mr. Trump isending, while also providing states some flexibility under theACA.

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Meanwhile, Forbes contributor Sally Pipes writes that “patients andemployers should celebrate” Trump’s executive order to easeregulations on the types of plans that insurers can offer on theexchanges.

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“The administration is taking action where Congress could not toincrease the number of health insurance choices available toAmericans -- and to reduce their cost,” Pipes writes.

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The order allows for three key changes to ACA regulations, shewrites. First, it aims to expand access to association healthplans, or AHPs, enabling small, “like-minded” employers to joinforces to purchase a large-group insurance policy together.

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Such plans aren’t required to cover all of the “essential healthbenefits,” such as mental health services or substance abusetreatment – which can be less expensive if offered outside ofhealth plans, Pipes writes. Small businesses would likely craftplans with lower premiums and deductibles, and employees couldaccess the additional services via other ways at a more affordablecost.

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Small businesses that form AHPs also expand their bargainingpower with insurers to obtain lower premiums or deductibles, shewrites.

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“And they’d be able to allow insurers to consider the aggregatehealth status of the workers in the association, in hopes ofsecuring lower premiums than they might be able to get on theexchanges, where medical underwriting is prohibited,” Pipeswrites.

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Trump’s order also relaxes restrictions on low-cost short-termhealth insurance plans, which would “provide a legitimate low-costoption for those who are tired of paying ever-more for coveragethrough the exchanges,” she writes.

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The third component of Trump’s order will likely to broaden thedefinition of qualified health care expenses to allow for funds inhealth reimbursement accounts to cover insurance premiums, which“could help scores of people who previously could not affordcoverage pay for it, ” Pipes writes.

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“Republicans have promised for the better part of eight years toexpand access to low-cost coverage by repealing and replacingObamacare,” she concludes. “President Trump’s executive orderfinally makes good on that promise, albeit to a small degree. Thereis still far more work to be done, but the president’s actions area great step forward in moving past Obamacare's sorry health carelegacy.”

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