On Monday, the White House asked for a 90-day delay in a lawsuit over whether Congress should continue to fund Obamacare subsidies. This means that subsidies that help more than 7 million low-income Americans afford health care can continue in the meantime.
The Trump administration has threatened Obamacare subsidies numerous times. President Donald Trump had previously suggested that Democrats should negotiate with him on a health care bill if they wished to keep the subsidies. A Los Angeles Times story reported that Seema Verma, administrator of Centers for Medicare and Medicaid Services, offered a deal to insurers that if they supported the House Republican health care bill, the subsidies would remain in place.
Health care experts say that although the decision is a positive outcome in the short term, it perpetuates uncertainty for insurers as they make decisions about 2018 rates. In three months, insurers would have already made decisions about premiums.
Larry Levitt, senior vice president for the Kaiser Family Foundation, said that a move to end the subsidies would signal that the administration wants Obamacare marketplaces to collapse, causing insurers to flee.
Ending CSR payments would be a signal to insurers that the administration wants the ACA marketplaces to collapse. Why stick around then?
— Larry Levitt (@larry_levitt) May 19, 2017
A delay in the court case over ACA cost-sharing payments avoids an immediate crisis, but continues uncertainty for insurers.
— Larry Levitt (@larry_levitt) May 22, 2017
Andy Slavitt, former acting administrator for the Centers for Medicare and Medicaid Services, said that delaying the lawsuit gets the White House the same outcome but allows them to deny responsibility for it.
Insurance company actuaries with no exceptions I'm aware of will price 2018 assuming no payment. 3
— Andy Slavitt (@ASlavitt) May 22, 2017
This is on top of assuming individual mandate won't be enforced & administration will take every possible action to hurt ACA and them. 4
— Andy Slavitt (@ASlavitt) May 22, 2017
This is a "go for broke" strategy to force Trumpcare. Ending lawsuit is explicit. Deferring gets same outcome w potential for deniability.5
— Andy Slavitt (@ASlavitt) May 22, 2017
Later this week, Trump is expected to unveil a budget proposal that would decimate low-income health coverage by cutting $800 billion out of Medicaid.