Court complicates Trump's threat to cut 'Obamacare' funds

Legal Business

President Donald Trump's bold threat to push "Obamacare" into collapse may get harder to carry out after a new court ruling.

The procedural decision late Tuesday by a federal appeals panel in Washington has implications for millions of consumers. The judges said that a group of states can defend the legality of government "cost-sharing" subsidies for copays and deductibles under the Affordable Care Act if the Trump administration decides to stop paying the money.

Trump has been threatening to do just that for months, and he amped up his warnings after the GOP's drive to repeal and replace "Obamacare" fell apart in the Senate last week. The subsidies help keep premiums in check, but they are under a legal cloud because of a dispute over the wording of the ACA. Trump has speculated that he could force Democrats to make a deal on health care by stopping the payments.

The court's decision is "a check on the ability of the president to sabotage the Affordable Care Act in one very important way," said Tim Jost, professor emeritus at Washington and Lee University School of Law in Virginia, a supporter of the ACA who has followed the issue closely.

Because of the ruling, legal experts said, states can now sue if the administration cuts off the subsidies. Also, they said, the president won't be able to claim he's merely following the will of a lower court that found Congress had not properly approved the money.

The Justice Department had no comment on the decision. The White House re-issued an earlier statement saying, "the president is working with his staff and his Cabinet to consider the issues raised by the...payments."

Trump has made his feelings clear on Twitter. "If ObamaCare is hurting people, & it is, why shouldn't it hurt the insurance companies," he tweeted early Monday.

He elaborated in an earlier tweet, "If a new HealthCare Bill is not approved quickly, BAILOUTS for Insurance Companies...will end very soon!"

In a twist, the appeals court panel seemed to take such statements into account in granting 17 states and the District of Columbia the ability to intervene on behalf of consumers.

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Nimon Naphaeng, 36, a native and citizen of Thailand, who resided in Wakefield, R.I., was sentenced Monday to 27 months in federal prison for running an immigration fraud scheme that defrauded more than 320 individuals, most of them immigrants, of at least $400,000, and perhaps more than $518,000. The scheme included the unauthorized filing of false asylum applications on behalf of individuals who did not request, nor authorize, the applications.

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At sentencing, U.S. District Court Chief Judge William E. Smith ordered a provisional amount of restitution of $400,000. The final amount of restitution will be determined subject to additional victims being identified and additional court filings over the next 90 days. According to court documents already filed by the government, restitution in this matter may exceed $518,300. During the investigation, the government seized $285,789.31 from Naphaeng. The forfeited funds will be applied toward restitution for victims of Naphaeng’s crimes.

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