New poverty definition will cut health benefits for millions

The Trump administration is proposing regulatory changes that could result in cuts in federal aid to millions of low-income Americans.

The Office of Management and Budget proposal would adopt a lower rate of inflation to determine poverty — meaning the poverty limit would rise more slowly, and fewer people would qualify for assistance.

After 10 years, the change would result in:

  • Over a quarter million seniors and people with disabilities will lose their eligibility for Medicare Part D’s low-income subsidy program or receive minimal assistance.
  • More than 150 thousand seniors or people with disabilities will lose assistance with their Medicare premiums.
  • 300 thousand children will not be eligible for Medicaid or CHIP coverage.
  • Another quarter million people will lose the coverage they gained through the Affordable Care Act’s Medicaid expansion.
  • More than 150 thousand ACA exchange enrollees will lose all or most of their cost-sharing assistance.
  • Tens of thousands of ACA enrollees will lose their premium subsidies, and millions will receive much smaller subsidies.

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