Judge won't force Trump to keep making ObamaCare payments

BY NATHANIEL WEIXEL - 10/25/17 04:32 PM EDT 235
87

© Getty Images

A federal court in California has struck down an emergency motion that would have forced the Trump administration to continue making ObamaCare subsidy payments to insurers.

U.S. District Judge Vince Chhabria denied the motion for an injunction, saying that he was skeptical that cutting off the payments known as cost-sharing reductions (CSR) would cause an immediate injury to residents of the state.

He noted many states, including California, saw “the writing on the wall” and took actions to mitigate any potential harm if the payments were ended.

“To be sure, the absence of money for CSR payments does not seem to be causing health care reform to come crumbling down,” Chhabria wrote in his ruling.

California allowed insurers to add a surcharge to the mid-level silver plans, which increases the amount of tax credit subsidies available. So even though premiums would spike for silver plans, consumers wouldn’t be buying them.

Eighteen states and Washington, D.C., signed onto the motion for a temporary restraining order that would have forced the administration to keep making the payments while a lawsuit works its way through the courts.

Trump cut off the payments earlier this month, which are required under the law and help low-income people afford co-pays and deductibles.

The payments were the subject of a lawsuit by House Republicans during the Obama administration. A federal court ruled the payments were being made illegally, but the Obama administration appealed.

Congress could still decide to appropriate the payments, and there is some bipartisan agreement that they should be made. But no action has been taken, and some Republicans are hesitant to vote for what they see as a bailout of ObamaCare.

“Nonetheless, the absence of a permanent appropriation for these payments may be in significant tension with congressional purpose,” Chhabria said.

http://thehill.com/policy/healthcare...acare-payments