President Trump’s administration and House GOP leaders are coordinating to ensure that Obamacare subsidies keep flowing to middle class Americans who depend on them.
The Justice Department and House Republicans are expected on Monday to file a motion with the U.S. Court of Appeals, where House Republicans were challenging the legality of the subsidies to insurers, known as Cost Sharing Reductions, seeking an extra 90 days to resolve the issue, sources tell the Washington Examiner.
“We feel payments should continue while we figure out a solution,” a GOP source said. “The Justice Department is working with House Republicans in good faith to achieve this.”
The CSRs, officially transfers to insurance companies who provide lower-cost health insurance plans on Affordable Care Act exchanges, have been under legal challenge by House Republicans who believed that former President Barack Obama didn’t have the legal authority to pay them.
Trump has indicated a desire to halt the subsidies.
But Americans in House districts controlled by Republicans could be the hardest hit. Without the CSR transfers, the insurance companies might cancel existing plans and pull out of markets altogether. That could create a political firestorm for House Republicans already fearing a tough 2018 election because of Trump’s political troubles.
So until an interim solution can be worked out, or Trump and congresional Republicans can complete legislation to repeal and replace Obamacare, House GOP leaders and the Justice Department are in talks to figure out a path forward and ensure that the CSRs continue flowing to the insurance companies.
