Republican official open to maintaining payer cost-sharing subsidies, reinsurance payments — For now: 4 points

To ensure a smooth transition to the Trump administration, Rep. Mark Meadows (R-N.C.),  House Freedom Caucus chairman, said he would be open to continuing cost-sharing subsidies and reinsurance payments before the government reaches a long-term plan, The Hill reports.

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Here are four points:

1. The move would help payers segue off the ACA and onto a new plan the GOP is hoping to implement in the next year or so.

2. Rep. Meadows said although reinsurance payments and subsidies carry a hefty price tag, they are a “minor component” when dealing with a smoother transition away from the current health law.

3. Without the payments, insurance companies could lose a significant amount of money. Many have threatened to withdraw from exchanges if the government does not provide them the payments.

4. Insurance companies spent a lot of money on the ACA’s sickest and costliest patients, and the payments were a means to offset these high costs. The Hill reports without the payments, the payer market may collapse.

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