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American Focus > Blog > Health and Wellness > As Trump Cuts Health, More May Exit Obamacare Like CVS Health’s Aetna
Health and Wellness

As Trump Cuts Health, More May Exit Obamacare Like CVS Health’s Aetna

Last updated: May 4, 2025 7:02 am
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As Trump Cuts Health, More May Exit Obamacare Like CVS Health’s Aetna
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The recent announcement that CVS Health’s Aetna is withdrawing from the individual health insurance business, also known as Obamacare, has raised concerns about the future of health insurance coverage for millions of Americans. This decision by CVS could potentially prompt other insurers to follow suit if President Trump and congressional Republicans proceed with cuts to health benefits.

With CVS pulling out of the market, approximately 1 million people in 17 states will need to find new coverage for the upcoming year. While this is a relatively small percentage of the overall 24 million Americans enrolled in Affordable Care Act (ACA) exchanges, it still represents a significant disruption for those affected.

The Trump administration has already taken steps to make it more challenging for health insurers to sell Obamacare plans. Earlier this year, funding for navigators who assist individuals in signing up for coverage was slashed by the Centers for Medicare & Medicaid Services. This reduction in resources could result in fewer people enrolling in Obamacare plans, which in turn would impact health insurers who rely on these sign-ups for revenue.

Major players in the Obamacare market, such as Centene, Oscar Health, UnitedHealthcare, and various Blue Cross and Blue Shield plans, have experienced substantial growth in recent years. This growth can be attributed in part to expanded subsidies that make health insurance more affordable for a larger portion of the population. The Biden administration and the Democratic-controlled Congress played a key role in enhancing these subsidies through the Inflation Reduction Act of 2022.

However, the future of Obamacare remains uncertain, especially as the enhanced subsidies are set to expire at the end of the year. If Trump and Republicans in Congress prioritize tax cuts over funding for healthcare, it is possible that the momentum gained in recent years could come to a halt.

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While no other insurers have announced plans to withdraw from the Obamacare market, industry analysts are closely monitoring the situation. There is a possibility that more insurers may choose to scale back their presence in certain states or counties in response to changing market conditions.

Ultimately, the impact of CVS’ decision and potential cuts to health benefits will be felt by millions of Americans who rely on Obamacare for their health coverage. The future of the program hangs in the balance as policymakers navigate the complex intersection of healthcare and politics.

TAGGED:AetnacutsCVSExitHealthHealthsObamacareTrump
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