Speaker 1: Now it's time for our daily Bloomberg Lab Brief, exploring
Speaker 1: legal issues in the news. And Today, Bloomberg Lahoe student
Speaker 1: Grasso and Greg Sture discussed an appeals court battle over
Speaker 1: the constitutionality of Obamacare that's been suspended until after the inauguration.
Speaker 1: An emergency motion has been filed in the case on
Speaker 1: behalf of two Obamacare beneficiaries who say that suspending this
Speaker 1: suit could be devastating to their healthcare coverage. They seek
Speaker 1: with a big luck a professor at Yale University Law School,
Speaker 1: what is it that the House Republicans set in their
Speaker 1: lawsuit that the Obama administration was doing wrong? Okay, great? So?
Speaker 1: House versus Burwell is a challenge to wort of call
Speaker 1: the cost sharing reductions provided under the Affordable Care Act.
Speaker 1: Those are payments to insurers that in turns translate to
Speaker 1: UM lower deductibles and co pays UH for individual Americans
Speaker 1: who have insurance policies and a couple of years ago,
Speaker 1: the House filed the lawsuit saying that the funds were
Speaker 1: not properly appropriated in the statute for the Obama administration
Speaker 1: to actually be paying those cost sharing reduction statute. The
Speaker 1: case is about on the small level. But it's important
Speaker 1: to also understand that the case is also about a
Speaker 1: huge legal principle that has nothing to do with the
Speaker 1: Affordable Care Act, and that's the ability of one House
Speaker 1: of Congress to sue the president for his implementation of
Speaker 1: the law. House versus Burwell as an unprecedented victory for
Speaker 1: the House of Representatives on that point. There's never been
Speaker 1: a successful challenge, UM on that point. Before, just talk
Speaker 1: about what the incoming Trump administration's options might be, assuming
Speaker 1: that the interveneers don't don't complicate their plans. Given that
Speaker 1: the President elect to said he wants to appeal Obamacare,
Speaker 1: what might he and what could he do with this lawsuit? Yeah,
Speaker 1: I mean he's in a really difficult position. If ivery time,
Speaker 1: I might actually be rooting for the interveners to win. Uh.
Speaker 1: And this is why, UM, it's he does nothing. Let's
Speaker 1: say he comes in, he says, Okay, we're going to
Speaker 1: drop the appeal. What happens then it means that the
Speaker 1: House wins. It means the cost sharing payments stop. It
Speaker 1: means the insurers can't afford to be on the exchanges anymore,
Speaker 1: and they pull out, and you get insurance market chaos.
Speaker 1: Right now. You may be saying, Okay, he's going to
Speaker 1: repeal the Affordable Care Act, but he's not. He's repealing underlaying.
Speaker 1: So the Affordable Care Act is still going to be
Speaker 1: operational for the next four years maybe um, which means
Speaker 1: but it won't be able to function. That's a big luck.
Speaker 1: A professor at Yale University Law School, speaking with Bloomberg
Speaker 1: Law host during Grosso and Greg sture, You're gonna send
Speaker 1: a Bloomberg Law weekdays at one pm Wall Street Time
Speaker 1: here on Bloomberg Radio. Among the top legal stories from
Speaker 1: Bloomberg Law, federal judge has slashed a billion dollar verdict
Speaker 1: against Johnson and Johnson over artificial hips. The judge rule
Speaker 1: that a jury's peinot of damage award to six patients
Speaker 1: was excessive. That wipes out almost five hundred million dollars
Speaker 1: Johnson and Johnson would have had to pay for the
Speaker 1: faulty implets. The wife of a convicted inside a trader
Speaker 1: has talked up a rare win over the FBI. The
Speaker 1: agency agreed to settle a lawsuit that claimed agents eas
Speaker 1: dropped on her amid conversations with her husband. The wife
Speaker 1: of former Gallean Group trader Craig Drumal had sued sixteen
Speaker 1: FBI agents, saying they wrongly intercepted more than a hundred
Speaker 1: eighty private calls. In terms of the settlement were not disclosed.
Speaker 1: And that's this morning's Bloomberg Law Brief. You can find
Speaker 1: more legal news at Bloomberg law dot com and Bloomberg
Speaker 1: BNA dot com. Attorneys will find exceptional legal research and
Speaker 1: business development tools there as well. Visit Bloomberg law dot
Speaker 1: com and Bloomberg BNA dot com for more information.