1
00:00:00,040 --> 00:00:02,719
Speaker 1: Well, now it's time for our Bloomberg Law report. Let's

2
00:00:02,759 --> 00:00:05,240
Speaker 1: get to the legal stories we are watching this morning

3
00:00:05,240 --> 00:00:11,080
Speaker 1: with Steve Potus in the Bloomberg Washington newsroom. President Donald

4
00:00:11,119 --> 00:00:13,720
Speaker 1: Trump said he is moving step by step on his

5
00:00:13,800 --> 00:00:16,919
Speaker 1: own to remake the US healthcare system because Congress won't

6
00:00:16,920 --> 00:00:20,000
Speaker 1: act on his demand to repeal Obamacare. Critics call his

7
00:00:20,040 --> 00:00:23,319
Speaker 1: moves deliberate attempts to undermine the law. Lawmakers say a

8
00:00:23,400 --> 00:00:26,560
Speaker 1: year long effort to boost annual Pentagon spending by seventy

9
00:00:26,560 --> 00:00:29,480
Speaker 1: billion dollars is hanging in the balance as talks proceed

10
00:00:29,560 --> 00:00:32,680
Speaker 1: slowly among congressional leaders on the White House, and Qualcom

11
00:00:32,840 --> 00:00:35,600
Speaker 1: has filed lawsuits in China seeking to ban the sale

12
00:00:35,600 --> 00:00:38,360
Speaker 1: and manufacture of iPhones in the country. This is the

13
00:00:38,440 --> 00:00:40,839
Speaker 1: chip maker's biggest shot at Apple so far in a

14
00:00:40,960 --> 00:00:45,200
Speaker 1: sprawling and bitter legal fight. Bloomberg Law everything you need,

15
00:00:45,479 --> 00:00:49,839
Speaker 1: all on one legal research platform, including guidance analysis and

16
00:00:49,920 --> 00:00:53,880
Speaker 1: Bloomberg Market Intelligence. Find out more at Bloomberg Law dot

17
00:00:53,920 --> 00:00:58,280
Speaker 1: com and now other legal news we're watching this morning.

18
00:00:58,280 --> 00:01:01,920
Speaker 1: As President Trump's decision to end government's subsidies to insurers

19
00:01:02,000 --> 00:01:04,920
Speaker 1: under the Affordable Care Act for We're on that Bloomberg

20
00:01:05,040 --> 00:01:07,600
Speaker 1: Law host Juan Grosso and Michael Best speak with the

21
00:01:07,640 --> 00:01:11,759
Speaker 1: Yale University law professor Abby Luck and Bloomberg News healthcare

22
00:01:11,760 --> 00:01:16,440
Speaker 1: reporter Zak Tracer Zach, Let's start with these costs sharing

23
00:01:16,920 --> 00:01:19,480
Speaker 1: payments that were being made to ensure. What were they

24
00:01:19,480 --> 00:01:21,760
Speaker 1: and what did the president do? Sure? So these are

25
00:01:21,760 --> 00:01:24,600
Speaker 1: payments that go directly to insures and they help cover

26
00:01:24,720 --> 00:01:27,040
Speaker 1: costs related to this provision in the law that says

27
00:01:27,080 --> 00:01:30,800
Speaker 1: that low income people essentially have um reduced deductibles and

28
00:01:30,840 --> 00:01:32,960
Speaker 1: reduced copays and other kinds of out of podcat costs

29
00:01:33,000 --> 00:01:35,000
Speaker 1: when they go to see a doctor. And there's been

30
00:01:35,000 --> 00:01:39,240
Speaker 1: this ongoing legal dispute over these payments since it's been

31
00:01:39,240 --> 00:01:42,479
Speaker 1: going back and forth in court. UM, and the administration said, look,

32
00:01:42,520 --> 00:01:45,000
Speaker 1: you know, um, while that you know, we're done, We're

33
00:01:45,240 --> 00:01:48,760
Speaker 1: not going to pay these payments anymore. Um. The administration

34
00:01:48,800 --> 00:01:51,280
Speaker 1: had been paying them, the Trump administration had been paying

35
00:01:51,320 --> 00:01:53,400
Speaker 1: them for about the last nine months. But they changed

36
00:01:53,480 --> 00:01:56,280
Speaker 1: their minds and said we're cutting these off. So Abby,

37
00:01:56,360 --> 00:02:00,480
Speaker 1: what is the likely consequence of that? You know, there's

38
00:02:00,480 --> 00:02:02,800
Speaker 1: a couple important consequences for the attorneys general of New

39
00:02:02,880 --> 00:02:05,760
Speaker 1: York and California, saying that they were going to intervene

40
00:02:06,200 --> 00:02:09,120
Speaker 1: bring a direct lawsuit in the d C circuit to

41
00:02:09,639 --> 00:02:14,040
Speaker 1: challenge the administration stopping of those payments. Um, it's also

42
00:02:14,320 --> 00:02:17,880
Speaker 1: possible that we're going to see premiums rise potentially as

43
00:02:17,960 --> 00:02:20,799
Speaker 1: much as twenty percent for people in those states who

44
00:02:20,800 --> 00:02:23,480
Speaker 1: do not get insurance subsidies. Now, this is a point

45
00:02:23,520 --> 00:02:26,839
Speaker 1: that's really worth clarifying. The way the Affordable Care Act

46
00:02:26,880 --> 00:02:30,840
Speaker 1: works is that is subsidized insurance payments for people below

47
00:02:30,880 --> 00:02:34,160
Speaker 1: certain levels of the poverty line. When the Trump administration

48
00:02:34,160 --> 00:02:37,720
Speaker 1: cuts off those insurance payments, the subsidies are going to

49
00:02:37,760 --> 00:02:40,520
Speaker 1: go up. So the federal government and the taxpayers are

50
00:02:40,560 --> 00:02:43,000
Speaker 1: not going to save money from this action. The government

51
00:02:43,040 --> 00:02:45,840
Speaker 1: is going to wind up paying more in subsidies because

52
00:02:45,880 --> 00:02:48,960
Speaker 1: insurers are going to raise their premiums for everybody, both

53
00:02:48,960 --> 00:02:52,120
Speaker 1: those who can afford health insurance alone on those who can't.

54
00:02:52,400 --> 00:02:54,639
Speaker 1: So people who aren't subsidized are going to pay more.

55
00:02:55,080 --> 00:02:57,680
Speaker 1: People who are subsidized may pay the same amount, but

56
00:02:57,760 --> 00:03:00,799
Speaker 1: the federal government is going to pay more, and summon

57
00:03:00,840 --> 00:03:03,600
Speaker 1: sores are likely to pull out of the markets from

58
00:03:03,720 --> 00:03:07,040
Speaker 1: the increased cost to the system. And that's happy luck.

59
00:03:07,080 --> 00:03:10,119
Speaker 1: A professor at Yale University Law School and Bloomberg News

60
00:03:10,160 --> 00:03:13,519
Speaker 1: healthcare reporters at Tracer speaking with Bloomberg stoom Grasso and

61
00:03:13,600 --> 00:03:16,160
Speaker 1: Michael Best. You can listen to Bloomberg Law weekdays at

62
00:03:16,160 --> 00:03:19,280
Speaker 1: one pm Wall Street Time here on Bloomberg Radio, and

63
00:03:19,320 --> 00:03:23,040
Speaker 1: find more legal news at Bloomberg Law dot com. Attorneys

64
00:03:23,040 --> 00:03:26,000
Speaker 1: will find exceptional legal research and business development tools there.

65
00:03:26,120 --> 00:03:29,760
Speaker 1: As well is that Bloomberg Law dot com for more

66
00:03:29,800 --> 00:03:30,400
Speaker 1: information