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SHOWDOWN LOOMS ON OBAMACARE COSTS
Hearing gives Trump team chance to avert hefty increases
A Monday court hearing offers the Trump administration its best opportunity to prevent significant increases in health care costs for about 7 million lowerincome Americans who buy their plans on the Affordable Care Act exchanges.
The administration’s next move could prevent these insurance marketplaces from imploding as insurers are deciding which states, if any, to sell insurance in and at what price.
The hearing is part of a lawsuit filed by House Republicans who claim Congress hadn’t authorized payment of the subsidies to insurers to help consumers defray their out-of-pocket insurance costs. If they don’t know the subsidies are going to be paid next year, insurers will price plans up to 20% higher to cover their costs, the Kaiser Family Foundation estimated.
A lower court ruled that the subsidies were not authorized, and the Obama administration appealed. It’s unclear whether the Trump administration will ask for the case to be delayed until August (after insurers have to file their proposed 2018 premiums), allow the case to proceed or withdraw the Obama administration’s appeal. None of these outcomes would provide relief to insurers.