This was the Obamacare lawsuit brought by senators against Obama because Obama wanted to pay off the insurance losses without legal authority. Republicans, enough, want to drop the lawsuit and cover the insurance losses, adding another 15 billion or so to the deficit. The Trumpster indicates that is Dems cooperate, the lawsuit is dropped. So, we are back to basically full Obamacare, plus additional Swamp price fixings. They have managed to make the train wreck slightly worse than Obamacare made it slightly worse.
For now, the Trump administration has continued making those payments. Some House Republicans have expressed support for keeping the money flowing or even authorizing the spending, which would resolve the legal dispute.
But Trump told The Wall Street Journal this week that he believes a threat to the viability of the insurance marketplaces could be leverage to force Democrats to the negotiating table. Democratic leaders have forcefully rejected this gambit and demanded that money for the cost-sharing subsidies be included in a pending federal spending bill.
Absent clarity on the subsidies, insurance companies may be reluctant to participate in the exchanges next year or, at a minimum, may request very high rate increases in order to cover their losses if the payments don’t continue. This could destabilize the troubled market just as analysts like Standard & Poor’s believe it may be righting itself.