DOJ, US House file joint motion to delay ACA subsidy lawsuit: 4 highlights

The U.S. House of Representatives and the Department of Justice jointly filed a motion granting them more time to decide if they want to continue pursuing a lawsuit against the ACA’s cost-sharing subsidies, according to The Hill.

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Here are four highlights:

1. The House initially filed the suit in 2015, claiming the ACA’s cost-sharing reductions were illegal as Congress never specified appropriations for the subsidies.

2. The delay is mainly due to the turbulent insurance industry with many payers threatening to completely leave the exchanges after suffering hefty financial losses in recent years, The Hill reports.
    
3. Some leading Republican legislators such as Sen. Lamar Alexander (R-Tenn.), the Senate’s chairman of the health, education, labor and pension committee, have advocated on behalf of maintaining the payments in the wake of payers’ major financial setbacks.

4. The joint motion gives the House and DOJ until May 22, 2017, to provide the court a status report and gives the parties a 90-day deadline to make a decision following that date.

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