House Republicans filed a long-awaited lawsuit against the Obama administration on Friday, arguing that the president has inappropriately acted without congressional authority to implement parts of the health care reform law. If it’s successful, the lawsuit could increase out-of-pocket costs for millions of vulnerable Americans who already struggle to afford health services — even though the GOP has repeatedly accused the law of making coverage too expensive.
According to the legal challenge, the White House shouldn’t have acted unilaterally to delay the employer mandate portion of the Affordable Care Act. But it also takes issue with a different provision of the law: subsidies known as cost-sharing reductions, which cap the amount that insurers are allowed to charge people for co-pays, deductibles, and other out-of-pocket expenses.
Over the next ten years, the ACA will give an estimated $175 billion in subsidies to insurance companies to keep health costs lower for Americans earning between 100 and 250 percent of the federal poverty line. House Republicans are arguing that money was illegally appropriated without getting approval from Congress.
If insurers no longer receive subsidies from the government to offset the cost of capping out-of-pocket costs, however, the New York Times reports that “the companies might be forced to raise costs elsewhere.” That could directly affect out-of-pocket expenses among a population that already worries about being able to afford insurance.
GOP lawmakers are setting their sets on repealing this particular consumer protection despite the fact that they’ve have previously had a lot of complaints about the health law raising out-of-pocket costs, arguing Obamacare threatens to make coverage too unaffordable for average Americans.
In advance of the law’s first enrollment period, Republicans were quick to criticize the other expenses accompanying new Obamacare plans aside from the monthly premiums, saying the deductibles were much too high. At the time, the Senate Republican Communications Center circulated a roundup of consumers complaining about their deductibles.
In April, House Speaker John Boeher (R-OH) complained that Obamacare has caused his co-pays and deductibles to triple, and said he’s been getting letters from his constituents having similar issues. In the lead up to the recent midterm elections, Republicans in close races relied on the messaging that the health law was driving up co-pays and deductibles. Candidates like incoming Sen. Jodi Ernst (IA) argued that the Obama administration was hiding the “true cost” of out-of-pocket expenses from enrollees.
“The House has an obligation to stand up for the Constitution, and that is exactly why we are pursuing this course of action,” Boehner said in a statement after the lawsuit was filed. But if he gets his way, the House GOP might also end up fueling its own complaints about the law.