Dem AGs Can Defend Obamacare Subsidies If Trump Won't, Court Rules


Tufts relies on the subsidies, known as cost-sharing reductions, or CSRs, more than any other MA insurer.

The CSR payments provide a considerable boost to health insurers' bottom line: about $7 billion last year, and an expected $10 billion this year. Alternatively, Congress can use deregulation to increase competition and make it feasible for insurers to offer affordable plans without massive subsidies.

The court decision notwithstanding, Trump's ability to stop the subsidies "is not diminished", said Justin Giovannelli, a research professor at Georgetown University's Center on Health Insurance Reforms.

If Congress wants to hear possible solutions to the ACA's serious problems, there are hundreds of people who have spent seven years considering them.

The U.S. Court of Appeals for the District of Columbia Circuit took that action over the objections of the Trump Administration, which has been threatening to end the subsidies, and of the Republican leaders of the House of Representatives, who have claimed that the subsidies at issues are unconstitutional.

The president has tweeted in recent days about possibly withholding federal subsidies for insurers that assist low-income customers - "cost-sharing reductions", or CSRs. Those tax credits were not part of the suit.

During an interview with Fox News Thursday, Budget Director Mick Mulvaney again stressed the importance of Congress repealing and replacing Obamacare.

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That put the Trump administration in the ironic position of defending a suit filed by other Republicans. A year ago a federal district court ruled in the House's favor, and the Obama administration appealed the case to the D.C. Circuit. Over the weekend, he said in a statement via Twitter that if Congress failed to pass a new health care law, the "BAILOUTS for Insurance Companies and BAILOUTS for Members of Congress will end very soon!"

A federal appeals court on Tuesday ruled that 16 Democratic state attorneys general may intervene in a lawsuit challenging subsidy payments to insurance companies under the Affordable Care Act (ACA). You want to make sure they have full service insurance. In May, 16 state attorneys general from both Republican- and Democratic-led states, led by California and NY, asked the federal appeals court for permission to intervene in the case. Trump's ham-fisted attempt at dealmaking is eroding those limits, and in the long run we are all worse off for it. "With this partisan process behind us, let's embark on a new chapter of bipartisan health care reform focused on ensuring the best quality care for all Americans".

If the administration "decides to stop making the payments, then it's going to have to do that on its own decision and not hide behind the lower court's decision", he said. Health Care Service Corp., a huge exchange player in five states, filed for average increases including 8.3% in Oklahoma, 23.6% in Texas, and 16% in IL. But somewhat higher-income consumers - a household of three making more than $85,000, for example - could be directly exposed to new ACA sticker shock.

In a statement, the National Governors Association said insurance markets reeling from rising premiums and dwindling plan choices shouldn't be saddled with more uncertainty.

It is unclear, as the August 16 deadline for insurers to set rates for 2018 nears, if Congress and the administration will commit to providing the billions of dollars in cost-sharing reduction payments that help offset low-income consumers' out-of-pocket costs under the ACA's individual market.

"We're at a bit of a tipping point of where things could go". "Without certainty on the cost-sharing reductions, most are going to assume that they're not going to be paid, and that's as much as a 20 percent rate hike".