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Speaker 1: Now it's time for our daily Bloomberg Law Breef, exploring

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Speaker 1: legal issues in the news, and Today Bloomberg Lawhoe Student

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Speaker 1: Grosso and Michael Best discuss the possibility of Resident Trump

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Speaker 1: halting cost sharing subsidies two insurers under Obamacare. They speak

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Speaker 1: with Abby Luck, director of the Solomon Center for Health

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Speaker 1: Law and Policy at Yale Law School, and Timothy Joast,

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Speaker 1: a professor at Washington and Lee University Law School. Abby,

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Speaker 1: how is it that the president can refuse to pay

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Speaker 1: insurance subsidies that are part of a law that's still

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Speaker 1: in place. Well, there is a lawsuit underway, which is

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Speaker 1: the House challenge the legality of these subsidies, and so

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Speaker 1: what the President is essentially arguing is that, uh, you know,

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Speaker 1: the House is correct to subsidies are illegal, so I

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Speaker 1: can use my executive authority to turn them off. His

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Speaker 1: motivation is to destabilize the insurance markets by turning off

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Speaker 1: this funding. Uh. And it's an continuing effort to try

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Speaker 1: to get the statute to fall under his own weight,

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Speaker 1: as he likes to put it, as far Timothy as

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Speaker 1: what will happen if he does this? Because the insurance

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Speaker 1: companies want reassurance about these subsidies. What will what will

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Speaker 1: we see happen if they don't get them? Well, it's

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Speaker 1: pretty hard to say. In the short term. Um, the

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Speaker 1: insurance companies do have the right under their contract with

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Speaker 1: the Federal Exchange in the states where that is covers,

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Speaker 1: to withdraw from the exchange if they don't get the payments.

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Speaker 1: But um, they would have to then give notice to

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Speaker 1: their consumers and to the state if they states if

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Speaker 1: they did that, and we're probably late enough now in

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Speaker 1: the year where it wouldn't make sense for them to

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Speaker 1: try to do that yet. For so, I think the

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Speaker 1: big question would be what happens in and I think

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Speaker 1: one of two things would happen. One is that they

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Speaker 1: will dramatically raise their premiums, probably around so that the

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Speaker 1: premiums tax credits they get from the federal government cover

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Speaker 1: the cost at the cost sharing reductions. And that's probably

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Speaker 1: when a lot of them will do. UM And and

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Speaker 1: the big losers there are going to be people over

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Speaker 1: four of poverty who who don't get premium tax credits,

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Speaker 1: who are just going to see their their premium skyrocket.

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Speaker 1: As Abby said, this is uh, you know, this is

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Speaker 1: sabotage of the market. And it's likely to have some effect,

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Speaker 1: but it's probably not likely to destroy the Affordable Care

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Speaker 1: Act exchanges. That's Timothy Johns, a professor at Washington and

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Speaker 1: Lee University Law School, and Abbey Luck, director of the

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Speaker 1: Solomon Center for Health Law and Policy at Yale Law School,

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Speaker 1: speaking with Bloomberg Law host During Brasso and Michael Best.

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Speaker 1: You can listen to Bloomberg Law weekdays at one pm

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Speaker 1: Wall Street Time here on Bloomberg Radio Now. Among the

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Speaker 1: top legal stories from Bloomberg Law. In Arizona, colorful former

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Speaker 1: sheriff faces prison time for violating a court order. A

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Speaker 1: federal judge rule that Joe are Io wilfully violated in

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Speaker 1: order prohibiting his office from detaining people based only on

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Speaker 1: the suspicion they were undocumented immigrants. Our Pao will be

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Speaker 1: sentenced in October. Wells Fargo customers are accusing the bank

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Speaker 1: of forcing them to buy unnecessary auto insurance. A lawsuit

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Speaker 1: says in some cases, the payments forced them into a

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Speaker 1: financial spiral that led to their vehicles being repossessed. Wells

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Speaker 1: Fargo admitted last week that it may have pushed thousands

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Speaker 1: of car buyers into loan defaults and repossessions. Yeah, that's

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Speaker 1: this morning's Bloomberg Law Brief. You can find more legal

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