1 00:00:00,080 --> 00:00:02,840 Speaker 1: Now it's time for our daily Bloomberg Lab Brief, exploring 2 00:00:02,920 --> 00:00:05,640 Speaker 1: legal issues in the news. And Today, Bloomberg Lahoe student 3 00:00:05,680 --> 00:00:09,000 Speaker 1: Grasso and Greg Sture discussed an appeals court battle over 4 00:00:09,039 --> 00:00:13,920 Speaker 1: the constitutionality of Obamacare that's been suspended until after the inauguration. 5 00:00:14,240 --> 00:00:16,480 Speaker 1: An emergency motion has been filed in the case on 6 00:00:16,560 --> 00:00:19,919 Speaker 1: behalf of two Obamacare beneficiaries who say that suspending this 7 00:00:20,000 --> 00:00:23,119 Speaker 1: suit could be devastating to their healthcare coverage. They seek 8 00:00:23,160 --> 00:00:26,040 Speaker 1: with a big luck a professor at Yale University Law School, 9 00:00:26,960 --> 00:00:29,160 Speaker 1: what is it that the House Republicans set in their 10 00:00:29,240 --> 00:00:33,760 Speaker 1: lawsuit that the Obama administration was doing wrong? Okay, great? So? 11 00:00:33,960 --> 00:00:36,599 Speaker 1: House versus Burwell is a challenge to wort of call 12 00:00:36,680 --> 00:00:39,640 Speaker 1: the cost sharing reductions provided under the Affordable Care Act. 13 00:00:39,920 --> 00:00:42,720 Speaker 1: Those are payments to insurers that in turns translate to 14 00:00:43,400 --> 00:00:47,440 Speaker 1: UM lower deductibles and co pays UH for individual Americans 15 00:00:47,440 --> 00:00:49,800 Speaker 1: who have insurance policies and a couple of years ago, 16 00:00:49,920 --> 00:00:53,440 Speaker 1: the House filed the lawsuit saying that the funds were 17 00:00:53,440 --> 00:00:57,880 Speaker 1: not properly appropriated in the statute for the Obama administration 18 00:00:58,000 --> 00:01:01,680 Speaker 1: to actually be paying those cost sharing reduction statute. The 19 00:01:01,680 --> 00:01:04,000 Speaker 1: case is about on the small level. But it's important 20 00:01:04,000 --> 00:01:06,600 Speaker 1: to also understand that the case is also about a 21 00:01:06,680 --> 00:01:09,240 Speaker 1: huge legal principle that has nothing to do with the 22 00:01:09,280 --> 00:01:13,240 Speaker 1: Affordable Care Act, and that's the ability of one House 23 00:01:13,280 --> 00:01:16,240 Speaker 1: of Congress to sue the president for his implementation of 24 00:01:16,280 --> 00:01:19,880 Speaker 1: the law. House versus Burwell as an unprecedented victory for 25 00:01:19,920 --> 00:01:22,560 Speaker 1: the House of Representatives on that point. There's never been 26 00:01:22,600 --> 00:01:26,240 Speaker 1: a successful challenge, UM on that point. Before, just talk 27 00:01:26,280 --> 00:01:31,039 Speaker 1: about what the incoming Trump administration's options might be, assuming 28 00:01:31,080 --> 00:01:35,480 Speaker 1: that the interveneers don't don't complicate their plans. Given that 29 00:01:35,520 --> 00:01:39,680 Speaker 1: the President elect to said he wants to appeal Obamacare, 30 00:01:39,400 --> 00:01:43,280 Speaker 1: what might he and what could he do with this lawsuit? Yeah, 31 00:01:43,280 --> 00:01:45,720 Speaker 1: I mean he's in a really difficult position. If ivery time, 32 00:01:45,760 --> 00:01:48,560 Speaker 1: I might actually be rooting for the interveners to win. Uh. 33 00:01:48,560 --> 00:01:52,000 Speaker 1: And this is why, UM, it's he does nothing. Let's 34 00:01:52,000 --> 00:01:53,680 Speaker 1: say he comes in, he says, Okay, we're going to 35 00:01:53,840 --> 00:01:56,840 Speaker 1: drop the appeal. What happens then it means that the 36 00:01:56,920 --> 00:02:00,400 Speaker 1: House wins. It means the cost sharing payments stop. It 37 00:02:00,440 --> 00:02:03,400 Speaker 1: means the insurers can't afford to be on the exchanges anymore, 38 00:02:03,480 --> 00:02:06,480 Speaker 1: and they pull out, and you get insurance market chaos. 39 00:02:06,960 --> 00:02:09,079 Speaker 1: Right now. You may be saying, Okay, he's going to 40 00:02:09,200 --> 00:02:12,919 Speaker 1: repeal the Affordable Care Act, but he's not. He's repealing underlaying. 41 00:02:13,080 --> 00:02:15,120 Speaker 1: So the Affordable Care Act is still going to be 42 00:02:15,160 --> 00:02:20,000 Speaker 1: operational for the next four years maybe um, which means 43 00:02:20,040 --> 00:02:23,079 Speaker 1: but it won't be able to function. That's a big luck. 44 00:02:23,160 --> 00:02:26,120 Speaker 1: A professor at Yale University Law School, speaking with Bloomberg 45 00:02:26,200 --> 00:02:28,839 Speaker 1: Law host during Grosso and Greg sture, You're gonna send 46 00:02:28,840 --> 00:02:31,680 Speaker 1: a Bloomberg Law weekdays at one pm Wall Street Time 47 00:02:31,800 --> 00:02:35,040 Speaker 1: here on Bloomberg Radio. Among the top legal stories from 48 00:02:35,040 --> 00:02:38,120 Speaker 1: Bloomberg Law, federal judge has slashed a billion dollar verdict 49 00:02:38,120 --> 00:02:41,359 Speaker 1: against Johnson and Johnson over artificial hips. The judge rule 50 00:02:41,440 --> 00:02:44,200 Speaker 1: that a jury's peinot of damage award to six patients 51 00:02:44,440 --> 00:02:47,760 Speaker 1: was excessive. That wipes out almost five hundred million dollars 52 00:02:48,000 --> 00:02:49,880 Speaker 1: Johnson and Johnson would have had to pay for the 53 00:02:49,880 --> 00:02:53,960 Speaker 1: faulty implets. The wife of a convicted inside a trader 54 00:02:54,000 --> 00:02:56,400 Speaker 1: has talked up a rare win over the FBI. The 55 00:02:56,440 --> 00:02:59,119 Speaker 1: agency agreed to settle a lawsuit that claimed agents eas 56 00:02:59,200 --> 00:03:02,440 Speaker 1: dropped on her amid conversations with her husband. The wife 57 00:03:02,520 --> 00:03:05,840 Speaker 1: of former Gallean Group trader Craig Drumal had sued sixteen 58 00:03:05,919 --> 00:03:09,160 Speaker 1: FBI agents, saying they wrongly intercepted more than a hundred 59 00:03:09,160 --> 00:03:12,400 Speaker 1: eighty private calls. In terms of the settlement were not disclosed. 60 00:03:12,440 --> 00:03:14,519 Speaker 1: And that's this morning's Bloomberg Law Brief. You can find 61 00:03:14,520 --> 00:03:17,000 Speaker 1: more legal news at Bloomberg law dot com and Bloomberg 62 00:03:17,000 --> 00:03:20,240 Speaker 1: BNA dot com. Attorneys will find exceptional legal research and 63 00:03:20,280 --> 00:03:23,920 Speaker 1: business development tools there as well. Visit Bloomberg law dot 64 00:03:23,960 --> 00:03:26,840 Speaker 1: com and Bloomberg BNA dot com for more information.