Obamacare ruling’s stay leaves impact unclear

A ruling Thursday by a federal district judge invalidating funding for part of the Affordable Care Act won’t affect Arkansas’ health insurance markets yet because the judge stayed her own decision until it is reviewed by a higher court.

“I think until the appeal runs its course it is too early to tell” what kind of impact the ruling could have, said Max Greenwood, a spokesperson for Arkansas Blue Cross and Blue Shield.

At issue is District Judge Rosemary Collyer’s decision in U.S. House of Representatives v. Burwell regarding the ACA’s Section 1402. That section of Obamacare requires insurers offering health plans on insurance exchanges to reduce costs for those earning up to 250% of the federal poverty level, with the cost-sharing reduction then reimbursed by the government.

Collyer ruled that while the ACA authorized Section 1402, it never appropriated the money. Thus the billions of dollars already paid through that part of the act have been paid in violation of the Constitution. She enjoined any further reimbursements from taking place but then stayed her own decision pending appeals.

As of May 1, 66,584 Arkansans were receiving coverage through the exchange, according to the Arkansas Insurance Department. The department does not track what percentage of those Arkansans receive subsidies. The federal poverty level equals an $11,880 annual salary for an individual and $24,300 for a family of four. The 250% threshold would equal $29,700 for individuals and $60,750 for a family of four.

Ray Hanley, president and CEO of the Arkansas Foundation for Medical Care, agreed that the decision has no immediate impact because of Collyer’s staying her own decision. If the appeals court doesn’t reverse the decision, it will have an impact on those Arkansans benefiting from cost-saving subsidies.

The decision will not affect Arkansas Works directly because that program is funded through a separate stream, said Amy Webb, a spokesperson with the Department of Human Services. Arkansas Works is the state program that uses federal dollars to purchase private health insurance for about a quarter of a million Arkansans.

U.S. Rep. French Hill, who represents Arkansas’ 2nd District, released a statement saying, “We need innovative, patient-centered healthcare reform. This should be a wake-up call to Democrats in Washington that not only is Obamacare a disaster that has raised costs and decreased access to healthcare for many hardworking American families, it is also unlawful, and now is the time to work together on real reform.”

Sen. Tom Cotton said in a statement, “It’s little surprising that President Obama once again broke the law to force his will on the American people. Time and time again he’s circumvented Congress and ignored the Constitution to uphold his liberal agenda. Obamacare is driving up healthcare costs and making health insurance more expensive. We need to repeal Obamacare and provide Americans with real healthcare reforms that actually lower costs. As this case continues to make its away through the courts, I will fight in the Senate to ensure Arkansans and all Americans are protected from the worst effects of Obamacare.”