Change of tune: Trump administration seeks to reaffirm Obamacare

In a surprise move Friday, December 21, lawyers for the Trump administration filed a brief asking U.S. District Judge Reed O’Connor, federal judge in Texas who declared Obamacare unconstitutional, to downplay the impact of the case. The Trump administration wants to reassure the public his decision was not effective immediately and he did not intend “substantial disruption to the healthcare markets” after the presidents’s misleading public comment made about the December 14 court ruling. The president wrote “As I predicted all along, Obamacare has been struck down as an UNCONSTITUTIONAL disaster!”. Late the White House Communications Office issued a corrective statement “the law remains in place” and was not, in reality, “struck down”.

U.S. Justice Department originally backed the court case to declare Obamacare unconstitutional but now realizes that they have no other plan to fund healthcare. The Trump officials want to assure the public that Obamacare is still the ‘law of the land’ despite the president’s statements that “Obamacare Is dead” that are meant for political purposes and are not meant to confuse people or to lie to the public about the availability of legally available health coverage under Obamacare. At least one public official believes that Trump can be held legally liable for his lies that could cost people to forfeit government-provided health insurance.

The issue is expected to be resolved in the when the Democrat-led Congress regains power and resumes a “healthcare for all” agenda. Neither the Judge’s ruling nor the U.S. Justice Department have any effect on the private commercial health plans listed at Freedom Benefits that are exempt from most Obamacare laws.

20 states fight unconstitutional Obamacare provisions

President Trump signing

Twenty states sued the federal government in February 2018 arguing that the current law requiring insurance companies to cover pre-existing conditions is unconstitutional. The US Justice Department now sides with these 20 states in trying to use the courts to bring an end to Obamacare. Led by Texas Attorney General Ken Paxton and Wisconsin Attorney General Brad Schimel, the lawsuit said that without the individual mandate, which was eliminated as part of the Republican tax law signed by President Donald Trump in December, Obamacare was unlawful. Ironically, observers say that these 20 states stand to lose more health care funding than many other states if the lawsuit is successful. A copy of the initial filing is available here.

Paxton said “The U.S. Supreme Court already admitted that an individual mandate without a tax penalty is unconstitutional. With no remaining legitimate basis for the law, it is time that Americans are finally free from the stranglehold of Obamacare, once and for all”.

Alabama Attorney General Steve Marshall, representing one of the other twenty states in the lawsuit argues a provision in the Affordable Care Act requiring insurers to cover pre-existing conditions is unconstitutional. The lawsuit would affect almost one million people in Alabama alone according to the Kaiser Family Foundation, a non-profit with insurance industry connections. They say that about 1 in 3 people in the state of Alabama have a pre-existing medical condition that would not be covered if the state’s lawsuit is successful.

To address this situation, President Donald Trump issued an executive order early in his presidency directing the adoption of regulations that would deem some low-cost health insurance that does not cover pre-existing conditions as being ACA-compliant.

The 20 states that want to end Obamacare are: TEXASWISCONSINALABAMAARKANSAS, ARIZONA, FLORIDAGEORGIA, INDIANAKANSASLOUISIANA, MAINEMISSISSIPPIMISSOURINEBRASKANORTH DAKOTASOUTH CAROLINASOUTH DAKOTATENNESSEEUTAH, and WEST VIRGINIA.

Freedom Benefits stepped up its services to offer advice on choosing between the old and new types of health care plans and can help introduce consumers to the best health plan for their situation and budget. Freedom Benefits reminds residents of these 20 states that a medical condition that makes a person uninsurable can happen to anyone at any time. It is important to have a backup plan and an asset protection plan to protect family assets from the high cost of unexpected and uninsured medical costs.