With the House v. Burwell case on hold, President-elect Donald Trump has opportunity to “drop” the Affordable Care Act, after he takes office. (Pablo Martinez Monsivais/AP)
A federal appeals court said Monday it is delaying a case against President Barack Obama's health care law, positioning President-elect Donald Trump to take one of the most straightforward actions that will be available to him to unravel the Affordable Care Act.
The Obama administration earlier this year appealed a lower court's decision in the case, House v. Burwell, seeking to preserve its ability to allot billions in funding to health insurance companies to help cover the costs of insuring low-income people.
But Monday's order in the U.S. Court of Appeals for the D.C. Circuit placing the case on hold presents Trump with the opportunity to drop the appeal after he takes office – a move that would be a significant step toward fulfilling his stated agenda to repeal and replace Obamacare.
The case, first brought by House Republican lawmakers in 2014, charges that the Obama administration unconstitutionally gave billions of dollars to insurers that Congress hadn't formally appropriated. The money was intended to help blunt costs incurred by insurance companies for providing reduced out-of-pocket health care costs for low-income policy holders, as required by the Affordable Care Act.
U.S. District Court Judge Rosemary Collyer ruled in favor of House Republicans in May, writing that the appropriation "cannot be inferred" and that the payments to insurers were a violation of the Constitution.
However, she stayed a prohibition on the reimbursements pending an appeal, and the Obama administration filed an opening appellate brief in October, arguing in part against the lower court's "unprecedented" move allowing one chamber of Congress to pursue litigation to resolve a political dispute.
"Disagreements between the political branches are resolved through the political process, not through litigation instigated by a single House of Congress," the brief states. "The district court’s decision fundamentally undermines that constitutional design and would vastly expand the role of the judicial branch, enmeshing courts in a limitless number of political disputes."
Last month, House Republicans asked the appeals court to delay further proceedings in the lawsuit until late February, saying the nation's health care policies likely would be changing with the incoming administration.
"The relatively short stay requested ... would provide the incoming president and his appointed officials time to decide whether withdrawal or settlement of the appeal is warranted," attorneys wrote in the motion. "In light of public statements by the president-elect and his campaign, there is at least a significant possibility of a meaningful change in policy in the new administration that could either obviate the need for resolution of this appeal or affect the nature and scope of the issues presented for review."
A move to drop the appeal, coupled with no replacement mechanism for the cost-sharing funds, would keep payments from going to insurers and result in companies losing money they expected to receive when they priced insurance policies, raising the likely prospect of them withdrawing from the exchanges and undermining the overall viability of Obamacare and the insurance market.
Several insurance companies already have complained that they are losing millions of dollars by participating in Obamacare's exchanges, and some have dropped out of participating in certain states.
Kimberly Leonard is a health care reporter for the News division at U.S. News. Previously she worked in Health Rankings as a multimedia producer and reporter. You can follow her on Twitter, connect with her on LinkedIn, circle her on Google+ or email her at kleonard@usnews.com
Recommended Articles
The 10 Worst Presidents
Dec. 31, 2014
Not all U.S. presidents are missed once they leave the White House.
Editorial Cartoons on Donald Trump
June 14, 2012
Photos: Obama Behind the Scenes
Sept. 10, 2014
A collection of moments subtle and grand of the 44th president of the United States.
Trump’s Awkward Merkel Summit
March 17, 2017
The president’s visit with the German chancellor featured a joke about U.S. surveillance and two differing personalities.
Popped Pimp May Uncork Warrant Protection for Cellphone Location
March 17, 2017
Will the 9th Circuit break with four others? Advocates hope so.
Trump to Appeal Ruling on Travel Ban
March 17, 2017
The Justice Department, as expected, file a notice saying it intends to appeal a restraining order issued by a federal judge in Maryland.
Trump: Calling Me an Isolationist Is 'Fake News'
March 17, 2017
The president on Friday defended his public stance on international trade during an appearance with German Chancellor Angela Merkel.
5 Things to Know About the Economy
March 17, 2017
U.S. News breaks down the week's most notable economic developments.
U.N.: 42 Bodies Recovered After Attack on Refugees
March 17, 2017
A boat carrying Somali refugees was attacked off the coast of Yemen on Friday.
Secret Service Laptop Containing Trump Tower Floor Plan, Clinton Email Investigation Details, Stolen in New York
March 17, 2017
The laptop was stolen out of an agent’s parked car.
Trump Says He Has Conservative Support for Health Plan
March 17, 2017
Some conservative Republicans hit back, though, at the suggestion they were on board with the House proposal.
Consumer Sentiment Nears 17-Year High – but Does It Matter?
March 17, 2017
Consumer confidence trackers have soared in the aftermath of Donald Trump's election, but whether that optimism translates to economic growth remains to be seen.
Trump Team Apologizes to Brits
March 17, 2017
Press secretary Sean Spicer repeated a report that British intelligence spied on Trump at his predecessor’s behest, sparking backlash from the U.K.
10 Things to Know About K.T. McFarland
March 17, 2017
President Donald Trump's deputy national security adviser was an aide to Henry Kissinger during the Nixon administration.
Trump, Tillerson Blast North Korea
March 17, 2017
Rex Tillerson met for a limited amount of time with some Asian officials due to what a South Korean outlet described as ‘fatigue.’
Japanese Government Found Liable for Fukushima
March 17, 2017
Friday’s ruling marks the first time government authorities have been formally cited for negligence in the 2011 disaster.
House Panel Calls for Changes to Health Bill
March 16, 2017
All Democratic recommendations failed, and the bill will advance next week.
Can Trump Trim Military Waste While Increasing Its Budget?
March 16, 2017
Experts say truly reforming the executive branch requires reigning in the government’s biggest bureaucracy – the Department of Defense.
Top Republicans Buck Trump’s Budget
March 16, 2017
Sens. John McCain, Lindsey Graham and Marco Rubio are among those pouring cold water on the president’s blueprint.
Spy Agency Requests Aren't in Trump Budget Proposal
March 16, 2017
The budgeting process is taking longer due to the White House transition, official says.
