Posted on 03/29/2017 9:55:16 AM PDT by Rusty0604
May 22: The ACA's day in court
One key to insurers selling plans in the marketplace are reimbursements they receive called cost-sharing reductions. These aren't the same as the tax credits that people receive to help pay their premiums; it is financial assistance to help low-income people pay their out-of-pocket costs, such as deductibles. The Congressional Budget Office projected those payments would add up to $7 billion this year and $10 billion in 2018.
In 2014, House Republicans sued the Obama administration over the constitutionality of the cost-sharing reduction payments, which had not been appropriated by Congress. The lawmakers won the lawsuit, and the Obama administration appealed it. Late last year, with a new administration on the other end of the suit, the House sought to pause the proceedings — with a deadline for a status update in late May.
The Trump administration and House lawmakers have to report to the judge this spring. If the Trump administration drops the appeal, it would mean the subsidies would stop being paid — a huge blow to the marketplaces and millions of people. If lawmakers wanted the payments to continue, they would have to find a way to fund them. One opportunity for that is coming up fast, the continuing resolution that must be passed by April 28. If the Trump administration continues the lawsuit, it will be in the odd position of fighting its own party.
In the interim, it has been the status quo: The cost-sharing reduction payments are being made each month. Lobbyists for the insurance industry are meeting with lawmakers to pressure them to continue funding cost-sharing reductions.
"Our hope is that there is a mechanism for continued funding for cost-sharing reductions, that happens regardless of the lawsuit, ... said Kristine Grow, spokeswoman for America's Health Insurance Plans.
(Excerpt) Read more at myajc.com ...
So who in Congress is being paid by the insurance lobby?
To reverse the administration would need 5-3.
this is a REALLY important piece of info to understand Obamacare.
No doubt Trump knew this was coming. In this light and given his recent talk about Obamacare “death spiral,” I imagine Trump quietly WANTED the Freedom Caucus to shoot down Ryancare. When that happens, everyone will be more willing to negotiate a real solution.
Thank God for the Freedom Caucus. The idea of Fed.gov cementing in place for the future more $$ Billions to crony-capitialist insurance companies to keep alive this fascist style leftist political program makes my blood boil.
The Trump administration should have stopped the payments on Day 1. Additionally, the head of HHS should be prosecuted for spending money that Congress did not authorize. Lawlessness such as this needs to be nipped in the bud (as Barney Fife would say).
I think it is important too, and I haven’t seen anything on it. So will Trump drop the court appeal? Will Ryan fund the Obama subsidies anyway?
That 10 billion would help fund building the wall they tell us they can’t afford.
I don’t understand your comment. If they drop the appeal, legally the subsidies go away.
It's the more difficult part of "follow the money."
Surely these lawmakers know that the lawsuit had already been won over the subsidies and all the Trump administration had to do is drop the appeal. Is Trump and Sessions DOJ continue the appeal for obamacare? Surely not.
If the Republicans were serious about repealing then they would have dropped the appeal January 21st.
You're dreaming I'm afraid.
never in the history of the nation has any program of this scope been repealed. what makes you think this will be the first?
I'm trying to be hopeful. It is possibly a political strategy. When another large chunk of crony-capitalist insurance companies leave the marketplace, then millions of Americans will have nothing. It becomes a crisis - and publicity-whore politicians often need a crisis to act. Trump has been warning about the "death spiral."
all I know for sure is - thank God the Freedom Caucus did not confirm or extend this disgusting bit of insurance industry, leftist-political corruption.
That was for if the appeal was not withdrawn.
As mentioned, the individual will file taxes at the beginning of the NEXT year to reconcile the Obamacare account per the premiums paid vs cost, et cetera.
If the individual gets a job mid-year or sometime during the year at which (s)he then buys healthcare through the company, then, at the beginning of the next year, the taxpayer must fill out complicated forms (almost always requiring the use of a preparer - more expense for the taxpayer) to show the difference in what was paid by the employer for health benefits and what was paid to the insurer by the government on the initial sign-up by the taxpayer.
The over payment amount is supposed to be repaid by the taxpayer to the government. However, a formula has been put in place by the Democrats in the healthcare plan which puts a limit on what low income individuals have to repay. Depending on income, none of it is repaid and/or very little is paid (you can research the amounts yourself by going to the government website or talking to an accountant like I did). The insurer does not repay ANY of the money which they were not supposed to get due to the taxpayer already having coverage. That is why the insurance companies really like Obamacare.
All of this amounts to billions of dollars of waste benefiting almost exclusively Democrat voters. By providing healthcare for greatly reduced cost to millions of poor (especially immigrants), the Democrats have bought control of the government. Too many Congress folks are getting money behind the scenes for it to ever be repaired to benefit the people.
Ok. But why would the DOJ not withdraw the appeal, and why would congress fund the subsidies anyway if they are both serious about repealing obamacare? Did I just answer my own question?
You are correct, and I don’t think anyone here would disagree with you.
The really evil part about all of this is that the mainstream media knows how it works, but are not reporting what is going on. This is further validation that they are the propaganda arm of the Democrat Party. The conservative media also does not have a real clear idea of how it works either and have not been reporting on what is going on. They need to learn and get the story out there.
And surely the republicans know about this, yet the insurance lobbyists are working to get them to fund the subsidies whether or not the court ruled against the legality of them.
It is possible that there are political or fiscal reasons why this type of behavior by Obama should be rejected by the courts. Also the Court might not allow dismissal of this action because of other parties.
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