Federal Appeals Court Puts Obamacare Lawsuit on Hold Until Trump; Cost Assistance in Jeopardy

An old lawsuit is rearing its ugly head again and it could lead to ObamaCare’s cost sharing assistance being defunded under Trump.

A federal appeals court ordered Monday December 5th, 2016 that a lawsuit filed against the Affordable Care Act by lawyers for the House of Representatives in 2014 (which ruled against subsidies and is on hold on its way to the higher courts) be put on temporary hold until after the inauguration of President-elect Donald Trump.

This means that if the Obama administration can’t see the issue resolved before January 20th, it will be resolved under Trump. If this happens it gives Trump and GOP an easy way to repeal a key provision of the law without having to fully own a repeal and replace plan.

At issue is the “cost sharing” provision in the law that requires insurance companies offering health plans through the law to reduce out-of-pocket costs for policy holders who qualify, which are enrollees with incomes below 250% of the poverty level or $29,700 for a single person. The government offsets the costs to insurance companies by reimbursing them.

The lawsuit charged that reimbursing insurers was illegal, if Congress can’t or won’t appropriate the funds, then there is no cost assistance.

The GOP has stated its intention to repeal the law via defunding the budget, so it follows that they would take advantage of an opportunity like this if Obama can’t take action and Trump settles the case with the House and leave standing a lower court opinion that went against the law.

Currently ObamaCare supporters are attempting to file an emergency motion with a federal appeals court on Tuesday in the hopes the court can rule on the motion to intervene before Trump’s inauguration on January 20.

Learn more from CNN: Obamacare supporters look to intervene in GOP-led lawsuit.

Author: Thomas DeMichele

Thomas DeMichele is the head writer and founder of ObamaCareFacts.com, FactsOnMedicare.com, and other websites. He has been in the health insurance and healthcare information field since 2012. ObamaCareFacts.com is a...

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