States Allowed To Intervene Over Federal Subsidy Payments Case, Court Of Appeals Rules
The case, which dates back to the Obama administration, was filed by the Republican-led House against the government in an effort to block the subsidy payments to insurers for the individual plans created by the Affordable Care Act. Sixteen attorneys general had filed to defend the subsidies.
Reuters:
Court Allows Democratic States To Defend Obamacare Payments
A U.S. appeals court on Tuesday allowed Democratic state attorneys general to defend subsidy payments to insurance companies under the Obamacare healthcare law, a critical part of funding for the statute that President Donald Trump has threatened to cut off. The U.S. Court of Appeals for the District of Columbia Circuit granted a motion filed by the 16 attorneys general, led by California's Xavier Becerra and New York's Eric Schneiderman. (Hurley, 8/1)
The Washington Post:
Court Ruling Could Help Keep Obamacare Subsidies
Led by the Democratic attorneys general of New York and California, the motion that the court granted is the most recent twist in the gnarled legal and political history of the subsidies. In practical terms, the ruling could make it more difficult for the Trump administration and House Republicans to abandon the payments without a court fight. (Goldstein, 8/1)
The Hill:
Court Rules Allowing Dem States To Defend Obamacare Payments
Insurers have threatened to leave the ObamaCare market exchanges if the payments are not continued, which could potentially leave millions without healthcare coverage options during the transition. "The states have shown a substantial risk that an injunction requiring termination of the payments at issue here ... would lead directly and imminently to an increase in insurance prices, which in turn will increase the number of uninsured individuals for whom the states will have to provide health care," the order stated. (Roubein and Seipel, 8/1)
Modern Healthcare:
Appeals Court Rules States Can Fight To Preserve ACA Subsidies
In May, 16 state attorneys general from both Republican- and Democratic-led states, led by California and New York, asked the federal appeals court for permission to intervene in the case. The lawsuit was originally brought by House Republicans to block federal payment to insurers to fund the Affordable Care Act's cost-sharing reduction subsidies for low-income exchange plan members. (Livingston, 8/2)
Bloomberg:
States Win Right To Join Defense Of Obamacare Subsidy Payments
“The court’s decision is good news for the hundreds of thousands of New York families that rely on these subsidies for their health care,” New York Attorney General Eric Schneiderman said in a statement reacting to the decision. “It’s disturbingly clear that President Trump and his administration are willing to treat them as political pawns; but this coalition of attorneys general stands ready to defend these vital subsidies and the quality, affordable health care they ensure for millions of families across the country.” (Harris, 8/1)
Modern Healthcare:
Trump's Threats To End Cost-Sharing Subsidies Could Lead To Premium Hikes And Litigation
Even though Senate Republicans' push to repeal the Affordable Care Act fizzled out last week, health insurers are still grappling with uncertainty over whether the federal government will continue to fund crucial subsidies that help low-income Americans pay for health coverage. Insurers and lobbying groups have warned over the last few months that premiums will increase if the cost-sharing reduction subsidies go unfunded in 2018. Now the Trump administration could also face new litigation if it fails to make the subsidy payments, as President Donald Trump has repeatedly threatened to do. (Livingston, 8/1)
CQ Roll Call:
Canceling Health Subsidies Could Prompt Higher Rates, Lawsuits
Insurance companies are bracing for the potential elimination of a federal health care subsidy with plans to boost premiums and file lawsuits. President Donald Trump is expected to announce as early as Tuesday whether he will continue to make the payments, with many experts counting on him to do so. Still, there are signs of nervousness among insurers. America’s Health Insurance Plans joined the Blue Cross Blue Shield Association in recently calling on Congress to permanently appropriate the money and resolve a long-running dispute about a glitch in the 2010 health care law (PL 111-148, PL 111-152.) And, AHIP CEO Marilyn Tavenner was spotted in the Senate Tuesday afternoon. (Clason, 8/1)
