jay angoff: "king v. burwell: obamacare on the brink?" 6.16.15

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1 King v. Burwell Jay Angoff Partner, Mehri & Skalet, PLLC Former Director, HHS Office of Consumer Information and Insurance Oversight [email protected] June 16, 2015

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1

King v. Burwell

Jay Angoff

Partner, Mehri & Skalet, PLLCFormer Director, HHS Office of Consumer Information and Insurance

Oversight

[email protected]

June 16, 2015 

 

2

Who really wants the King plaintiffs to win?

The Administration? Congressional Democrats? Pro-ACA governors in states using the federal Exchange? People receiving ACA subsidies?   

 

3

 Who really wants the King plaintiffs to win?

Congressional Republicans? Anti-ACA governors in states using the federal Exchange? The insurance industry? The hospital industry? Business in general?

 

4

Previous HHS/Administration actions

Postponing and phasing in employer mandate Allowing renewal of non-ACA-compliant plans after 2014 Allowing multiple deductibles Keeping 2014 and 2015 rate filings non-public Exempting "mini-med" policies from MLR rule Authorizing "partnership" Exchanges

 

5

Actions HHS can take if King plaintiffs win

Deem "partnership" and "SSBE" Exchanges to be state Exchanges? Make it as logistically easy as possible for other states using federal Exchange to credibly characterize it as a state Exchange?

By regulation or guidance, define an "Exchange shall be a governmental or non-profit entity established by the state" in the broadest possible way? Use carrots and sticks to encourage states and interest groups to cooperate?

 

6

Problems HHS can't solve

Absolute refusal to cooperate by state (3 types of states) 

2010 precedent--Enforcement, and Exchange grants

 No more state Exchange grant money Poor track record of states even with unlimited Exchange money Any aggressive HHS action likely to be challenged 

7

Considerations if King plaintiffs win

What carrots and sticks can HHS use to encourage states and interest groups to cooperate?  What incentives do HHS, states, and interest groups have to make ACA work? What incentives do HHS, states and interest groups have to have ACA not work? 

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UnitedHealth 257.7%

Cigna 272.0%

Humana 335.2%