ACA funding lawsuit creates delicate situation for GOP leaders

The results of a congressional lawsuit challenging the legality of the ACA's subsidy program could have great implications for the health insurance market, reports The New York Times.

Here are six things to know.

1. In November, the House of Representatives asked the federal court of appeals for the D.C. circuit to temporarily pause a congressional lawsuit.

2. By pausing the litigation, the court would give President-elect Donald Trump's incoming administration time to decide whether it wants to defend the financing mechanism of the ACA subsidy program.

3. If the federal subsidies were eliminated, health insurance companies would be legally allowed to terminate their ACA health plans immediately, possibly affecting millions of Americans before Republicans have prepared an ACA replacement.

4. To avert such an outcome, Republicans could end up appropriating huge amounts of federal monies to temporarily prop up the ACA, according to the report.

5. Additionally, the report notes, Mr. Trump's administration, amid concerns over preserving executive branch prerogatives, could decide to go up against Republican allies in the House on some central questions in the dispute.

6. In the meantime, the lawsuit has been put in limbo until at least late next month by the United States Court of Appeals for the District of Columbia Circuit, according to the report. Republican leaders have not yet revealed their strategy for addressing the potential outcomes of the pending lawsuit, reports The New York Times.

 

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