Trump administration helps states with waivers to undermine Obamacare

States could use the waivers to make their own health insurance plans or allow residents to buy expensive insurance

The federal government has issued suggestions to help states undermine the waiver system of Obamacare, helping to weaken the implementation of the act.

Donald Trump and the republican administration tried and failed to completely dismantle the Affordable Care Act, also known as Obamacare, soon after Mr Trump was sworn in as president. However, the administration is now helping states apply for alternative types of insurance, which could ultimately undermine Obamacare.

In October, the Trump administration broadened the application of waivers for states to create alternative models for the Affordable Care Act. With this power, individual states could decide what types of coverage are included and who has to pay higher premiums. Instead of adhering to the structure of the federal law, states would be eligible to make an insurance system the way they see fit, CNN reports.

On Thursday, the Centers for Medicare & Medicaid Services released examples of waivers that states can use to alter Obamacare, helping ease the process for lawmakers.

States also could have the option to permit individuals to use these insurance waivers with more flexibility, to buy insurance outside Obamacare exchanges or to buy insurance through their employers. Seven states already use waivers, and insurance providers had to lower their rates to comply with Obamacare in order to be eligible.

For the millions of people on Obamacare, coverage currently is guaranteed regardless of how high premiums go. This discourages some pricey private insurance providers from entering the Obamacare market. If enough people use the waivers instead, The Affordable Care Act may become too expensive to sustain. However, requests to alter healthcare in a state will only be approved if they are not predicted to cost the federal government more than what it is currently spending.