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	<title type="text">Nicholas Bagley | Vox</title>
	<subtitle type="text">Our world has too much noise and too little context. Vox helps you understand what matters.</subtitle>

	<updated>2018-06-08T17:23:26+00:00</updated>

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		<entry>
			
			<author>
				<name>Nicholas Bagley</name>
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			<title type="html"><![CDATA[Trump’s legal attack on the ACA isn’t about health care. It’s a war on the rule of law.]]></title>
			<link rel="alternate" type="text/html" href="https://www.vox.com/the-big-idea/2018/6/8/17442238/trump-aca-obamacare-texas-department-of-justice-rule-of-law" />
			<id>https://www.vox.com/the-big-idea/2018/6/8/17442238/trump-aca-obamacare-texas-department-of-justice-rule-of-law</id>
			<updated>2018-06-08T13:23:26-04:00</updated>
			<published>2018-06-08T13:30:02-04:00</published>
			<category scheme="https://www.vox.com" term="Health Care" /><category scheme="https://www.vox.com" term="Policy" /><category scheme="https://www.vox.com" term="Politics" /><category scheme="https://www.vox.com" term="The Big Idea" />
							<summary type="html"><![CDATA[In an unexpected move, the Justice Department filed a&#160;brief&#160;Thursday night urging a Texas court to invalidate the Affordable Care Act&#8217;s crucial insurance reforms &#8212; including the prohibition on refusing to cover people with preexisting conditions. Although the ACA is not in immediate peril, the brief represents a blow to the integrity and independence of the [&#8230;]]]></summary>
			
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<img alt="" data-caption="Protesters hold a small, peaceful demonstration in support of health care on September 23, 2017, in Livingston, Montana. | William Campbell-Corbis/Getty Images" data-portal-copyright="William Campbell-Corbis/Getty Images" data-has-syndication-rights="1" src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/11502679/GettyImages_852797248.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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	Protesters hold a small, peaceful demonstration in support of health care on September 23, 2017, in Livingston, Montana. | William Campbell-Corbis/Getty Images	</figcaption>
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<p>In an unexpected move, the Justice Department filed a&nbsp;<a href="https://www.justsecurity.org/wp-content/uploads/2018/06/ACA.Azar_.filing.pdf">brief</a>&nbsp;Thursday night urging a Texas court to invalidate the Affordable Care Act&rsquo;s crucial insurance reforms &mdash; including the prohibition on refusing to cover people with preexisting conditions. Although the ACA is <a href="https://www.vox.com/policy-and-politics/2018/6/7/17440120/obamacare-penalty-lawsuit-trump-brief">not in immediate peril</a>, the brief <a href="https://www.vox.com/policy-and-politics/2018/6/8/17441512/obamacare-lawsuit-texas-trump">represents a blow to the integrity and independence</a> of the Justice Department. It also displays the Trump administration&rsquo;s contempt for the rule of law.</p>

<p>Last March, a group of red states brought yet another lawsuit seeking to undo the ACA. In their case, they point out (rightly) that Congress, in the tax reform bill, repealed the penalty for going without insurance. They point out (rightly again) that the Supreme Court only upheld the individual mandate because it had been passed pursuant to Congress&rsquo;s taxing power.</p>

<p>As the states see it, the freestanding requirement to get insurance, which is still on the books, is therefore unconstitutional. The states are probably wrong about that, but never mind. It&rsquo;s their next move that&rsquo;s the really audacious one. They argue that because the penalty-free mandate is unconstitutional, the courts must invalidate the entire ACA &mdash; lock, stock, and barrel.</p>

<p>Why? Because in the states&rsquo; view, Congress believed that the individual mandate was essential to the proper functioning of the rest of the ACA. If it goes, Congress must have wanted the rest of the statute ditched too.</p>

<p>If that sounds inane, that&rsquo;s because it is. When Congress adopted the individual mandate in 2010, it was an essential part of a broader scheme. But Congress is always free to amend its statutes, even to omit what it previously thought was essential. That&rsquo;s what Congress did when it wiped out the penalty for going without insurance coverage.&nbsp;</p>

<p>That may have been imprudent: The goal of the individual mandate is to get healthy people to buy insurance, which spreads risk across a broader population and helps keep prices lower for all of us. Without the mandate, insurance premiums are projected to spike.</p>

<p>But Congress is free to make imprudent choices. And here, we don&rsquo;t have to speculate what Congress would&rsquo;ve done if it had to choose between invalidating the ACA and eliminating the mandate. Congress made the decision itself: The mandate can go and the rest can stand. For a court to now reject that choice would be the worst kind of judicial activism.</p>

<p>So this should&rsquo;ve been an easy layup for the Justice Department. In clean, crisp terms, it could simply have explained that when Congress repealed the mandate penalty, it didn&rsquo;t mean to unravel the entire ACA.</p>

<p>What&rsquo;s more, the Justice Department had a duty to make that argument. There&rsquo;s a longstanding, bipartisan commitment to defending acts of Congress whenever a non-frivolous argument can be made in their defense.</p>

<p>This brief, however, torches that commitment. It is hard to explain how big of a deal this is.</p>
<h2 class="wp-block-heading">This brief could open the door to the Justice Department using flimsy legal excuses not to defend the law</h2>
<p>The laws that Congress passes and that presidents sign are the laws of the land. They aren&rsquo;t negotiable; they&rsquo;re not up for further debate. If the Justice Department can just throw in the towel whenever a law is challenged in court, it can effectively pick and choose which laws should remain on the books. That&rsquo;s a flagrant violation of the president&rsquo;s constitutional duty to take care that the laws are faithfully executed.</p>

<p>But don&rsquo;t take my word for it. For Justice Department lawyers &mdash; and I was one myself (from 2007 to 2010) &mdash; the duty to defend congressional statutes is at the core of what it means to be a government attorney. Yet hours before the federal government filed its brief, three line attorneys from the Justice Department <a href="https://twitter.com/nicholas_bagley/status/1004836554223837191">withdrew from the case</a>. That&rsquo;s almost unheard of. These are lawyers who have made arguments they personally disagreed with countless times. They&rsquo;re civil servants; they&rsquo;re good soldiers.&nbsp;Yet they could not sign on to the administration&rsquo;s argument. That&rsquo;s how outlandish it is.</p>

<p>Do you want to live in a country where the Justice Department can use the flimsiest of arguments to justify declining to defend the law &mdash; or even to enforce it? The president has a duty to take care that all the laws are faithfully executed, not just the ones he likes. And while there are cases in which the Justice Department has deviated from that principle, they are extremely rare.</p>

<p>Is there&nbsp;any<em>&nbsp;</em>precedent for this? Odds are we&rsquo;re going to hear a lot in the coming days about the Obama administration&rsquo;s&nbsp;<a href="https://www.justice.gov/opa/pr/statement-attorney-general-litigation-involving-defense-marriage-act">decision</a>&nbsp;not to defend the Defense of Marriage Act. And it&rsquo;s a reasonable case to point to: There, too, the Justice Department refused to defend a statute it deplored.</p>

<p>With the Defense of Marriage Act, however, the Justice Department faced a question about the meaning of the Constitution with deep resonance for the values that we share as a nation. Just as we no longer believe it&rsquo;s constitutional to <a href="https://www.theatlantic.com/business/archive/2014/05/the-racist-housing-policy-that-made-your-neighborhood/371439/">offer federal mortgage insurance only in white neighborhoods</a>, the Justice Department concluded that we, as a country, had come around to the view that it was no longer constitutionally tenable to deny equal rights to LGBTQ people.</p>

<p>Whether you agree or disagree with the Justice Department&rsquo;s decision &mdash; and it made lots of people nervous, including me &mdash; it was rooted in the public&rsquo;s evolving sense about what the Constitution meant. By 2011, a justification that once seemed unobjectionable had come to seem untenable.</p>

<p>This case could not be more different from the Defense of Marriage Act. The question is not whether a penalty-free mandate is unconstitutional &mdash; who cares, honestly? The critical question, instead, is a technical one about &ldquo;severability.&rdquo; No one thinks that fights over severability represent a clash of fundamental constitutional values. No one thinks that severability strikes at the heart of who we are as a people and a country. What&rsquo;s more, the states&rsquo; argument is weak to the point of frivolousness. If that kind of cockamamie argument is a sufficient basis to decline to defend a statute, what isn&rsquo;t?</p>

<p>I, for one, am concerned. Not so much about the ACA: I still regard it as extremely unlikely that the Supreme Court will adopt an argument as far-fetched as the one the states have advanced. And, so far as I can make out, the Trump administration will continue to enforce the ACA while the litigation progresses. At least for now, no one needs to worry that their insurance will evaporate.</p>

<p>No, I&rsquo;m frightened for what this says about the rule of law. I don&rsquo;t like being alarmist about the rule of law &mdash; there&rsquo;s always a risk that in the heat of the moment, it sounds unhinged and naive. But the Trump administration has just announced that it doesn&rsquo;t care about a law that was passed by Congress and signed by the president. All that matters is that it hates the law and has a (laughable) argument for casting it aside.</p>

<p>That&rsquo;s not a rule of law I recognize. That&rsquo;s a rule by whim. And it should scare you too.</p>

<p><em>Nicholas Bagley is a professor at the University of Michigan Law School and a contributor to&nbsp;</em><a href="http://theincidentaleconomist.com/"><em><strong>the Incidental Economist</strong></em></a><em>. Find him on Twitter&nbsp;</em><a href="https://twitter.com/nicholas_bagley?lang=en"><em><strong>@nicholas_bagley</strong></em></a><em>.</em></p>
<hr class="wp-block-separator" />
<p><a href="http://vox.com/the-big-idea"><strong>The Big Idea</strong></a>&nbsp;is Vox&rsquo;s home for smart discussion of the most important issues and ideas in politics, science, and culture &mdash; typically by outside contributors. If you have an idea for a piece, pitch us at&nbsp;<a href="mailto:thebigidea@vox.com"><strong>thebigidea@vox.com</strong></a>.</p>
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			<title type="html"><![CDATA[Idaho is ignoring Obamacare rules. That could set off a catastrophic chain reaction.]]></title>
			<link rel="alternate" type="text/html" href="https://www.vox.com/the-big-idea/2018/2/22/17040016/idaho-obamacare-ignore-rules-health-care-red-state-revolt" />
			<id>https://www.vox.com/the-big-idea/2018/2/22/17040016/idaho-obamacare-ignore-rules-health-care-red-state-revolt</id>
			<updated>2018-02-24T11:46:26-05:00</updated>
			<published>2018-02-24T11:46:19-05:00</published>
			<category scheme="https://www.vox.com" term="Health Care" /><category scheme="https://www.vox.com" term="Policy" /><category scheme="https://www.vox.com" term="Politics" /><category scheme="https://www.vox.com" term="The Big Idea" />
							<summary type="html"><![CDATA[The unlikely state of Idaho just opened the latest front in the endless war against health reform. At the end of January, it announced that it will allow insurers to sell plans without regard to Obamacare&#8217;s pesky rules. So far as Idaho is concerned, insurers are free to charge the sick more for coverage, to [&#8230;]]]></summary>
			
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<img alt="" data-caption="The Idaho Capitol, site of an insurgency targeting Obamacare. | UIG via Getty Images" data-portal-copyright="UIG via Getty Images" data-has-syndication-rights="1" src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/10276751/GettyImages_144070359.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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	The Idaho Capitol, site of an insurgency targeting Obamacare. | UIG via Getty Images	</figcaption>
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<p>The unlikely state of Idaho just opened the latest front in the endless war against health reform. At the end of January, it announced that it <a href="http://online.wsj.com/public/resources/documents/DOIBulletin.pdf">will allow insurers</a> to sell plans without regard to Obamacare&rsquo;s pesky rules.</p>

<p>So far as Idaho is concerned, insurers are free to charge the sick more for coverage, to limit their benefits, and to impose annual payout caps. Last week, Blue Cross of Idaho <a href="https://www.vox.com/policy-and-politics/2018/2/16/17021050/obamacare-idaho-voxcare">said</a> it hopes to start selling <a href="http://premiumtaxcredits.wikispaces.com/file/view/State%20Based%20Plan%20Comparison%20-%20Bronze.pdf/626426343/State%20Based%20Plan%20Comparison%20-%20Bronze.pdf">noncompliant plans</a> by early March.</p>

<p>Given that the Affordable Care Act is still the law of the land, what&rsquo;s going on here? It&rsquo;s tempting to dismiss Idaho&rsquo;s move as an inconsequential political stunt. The state has a population the size of Phoenix and went for Donald Trump over Hillary Clinton by more than 30 points. A committee in its House of Representatives <a href="http://www.spokesman.com/blogs/boise/2018/feb/14/idaho-lawmakers-advance-federal-nullification-bill/">just approved a bill</a> to allow state lawmakers to nullify federal law &mdash; a nonstarter, constitutionally. So what if Idaho wants to fly its crazy flag?</p>

<p>But it would be a mistake to ignore what Idaho is up to. If the Trump administration doesn&rsquo;t intervene, other red states will surely follow in its footsteps. The result will be widespread disregard of the law and the rise of state-to-state inequalities in the private market similar to those that already exist in Medicaid.</p>

<p>And don&rsquo;t count on the courts: They&rsquo;re more likely than you might think to sit this one out. Idaho could help red states achieve what congressional Republicans have only dreamed of: the covert repeal of some of the ACA&rsquo;s most crucial protections. As Idaho goes, so goes the nation.</p>
<h2 class="wp-block-heading">Yes, what Idaho is doing is illegal. It’s not even close.</h2>
<p>What&rsquo;s worrisome about Idaho, legally speaking, is not that it won&rsquo;t enforce the Affordable Care Act. Under the Constitution, the federal government <a href="https://scholar.google.com/scholar_case?case=10894716839911389166&amp;q=printz&amp;hl=en&amp;as_sdt=80000006">can&rsquo;t direct state officials</a> to enforce federal law. That&rsquo;s why the ACA has a backup. When the states fail to &ldquo;substantially enforce&rdquo; the law, the Department of Health and Human Services is <a href="https://www.law.cornell.edu/uscode/text/42/300gg%E2%80%9322">supposed to enforce it for them</a>. The agency has already done so in <a href="https://www.cms.gov/CCIIO/Programs-and-Initiatives/Health-Insurance-Market-Reforms/compliance.html">four states</a> that want no part of Obamacare: Missouri, Oklahoma, Texas, and Wyoming.</p>

<p>Instead, what&rsquo;s worrisome is that Blue Cross of Idaho intends to disregard its <em>own</em> obligation to comply with federal law. The ACA prohibits all insurers in the United States from <a href="https://www.law.cornell.edu/uscode/text/42/300gg%E2%80%933">discriminating against the sick</a> and <a href="https://www.law.cornell.edu/uscode/text/42/300gg%E2%80%9311">imposing annual caps</a>, and states have no power to undo those prohibitions. So Blue Cross knows full well that it will be breaking the law if it takes up Idaho&rsquo;s invitation. It just thinks it&rsquo;ll get away with it.</p>

<p>Unfortunately, Blue Cross might be right. There&rsquo;s some bad precedent on the books. When President Obama came under fire for breaking his promise that &ldquo;if you like your health plan, you can keep it,&rdquo; his administration told states that they could allow insurers to sell &ldquo;grandmothered&rdquo; plans that violated ACA rules. That too was illegal, <a href="http://www.nejm.org/doi/full/10.1056/NEJMp1402641">as I said at the time</a>. But the Obama administration went ahead anyhow, which may have <a href="https://www.vox.com/the-big-idea/2017/2/1/14463904/obamacare-executive-power-trump-law">made</a> it easier for the Trump administration to turn a blind eye to what Idaho is doing.</p>

<p>If Idaho moves forward and other states follow its lead, what will emerge is a gray market in noncompliant insurance coverage, not unlike the gray market in legalized marijuana. Indeed, the marijuana analogy fits neatly. In both cases, state officials have purported to legalize conduct banned by federal law; in both cases, federal officials have been reluctant to enforce a law they disagree with.</p>

<p>And as with marijuana, what starts in one state will spread. As floutings of federal law go, Idaho&rsquo;s approach is <a href="http://online.wsj.com/public/resources/documents/DOIBulletin.pdf">pretty measured</a>. Under its rules, insurers that sell noncompliant plans must also sell compliant plans, the unhealthy can &ldquo;only&rdquo; be charged 50 percent more than the healthy, and insurers must cover preexisting conditions (unless there&rsquo;s a gap in coverage, in which case they don&rsquo;t).</p>

<p>But other red states that follow Idaho&rsquo;s lead may not be so restrained. They might allow insurers to ditch their ACA-compliant plans, to exclude any and all preexisting conditions, or to jettison coverage for mental health care. Red states could take us back to the harsh pre-ACA state of affairs, and all without the need for congressional action.</p>

<p>So this story isn&rsquo;t really about Idaho. It&rsquo;s about every Republican-controlled state that&rsquo;s waiting to see what happens next.</p>
<h2 class="wp-block-heading">The courts might intervene. Then again, they might not!</h2>
<p>Bringing a lawsuit to end the Idaho experiment won&rsquo;t be easy. Figuring out whom to sue and finding the right plaintiff both pose challenges. Suing HHS is probably a nonstarter. The Supreme Court has flatly <a href="https://scholar.google.com/scholar_case?case=7080789915693710984&amp;hl=en&amp;as_sdt=6&amp;as_vis=1&amp;oi=scholarr">held</a> that the courts can&rsquo;t review a federal agency&rsquo;s refusal to enforce the law. There&rsquo;s some wiggle room where an agency adopts a policy that&rsquo;s &ldquo;so extreme as to amount to an abdication of its statutory responsibilities,&rdquo; but the case would be a long shot.</p>

<p>A better approach would be to sue the Idaho Department of Insurance when it greenlights Blue Cross to sell noncompliant plans. Even though Idaho doesn&rsquo;t have to enforce the ACA, state law <a href="https://scholar.google.com/scholar_case?case=17187104586657141403&amp;q=127+Idaho+792&amp;hl=en&amp;as_sdt=80000006">requires</a> state agencies to follow federal law when they make decisions. And approving an illegal plan for sale is unquestionably an <a href="https://legislature.idaho.gov/statutesrules/idstat/title67/t67ch52/sect67-5279/">action</a> &ldquo;in violation of constitutional or statutory provisions.&rdquo;</p>

<p>To bring that case, however, you&rsquo;d have to find a plaintiff with <a href="https://scholar.google.com/scholar_case?case=2705505568807171087&amp;q=158+Idaho+874&amp;hl=en&amp;as_sdt=80000006">standing</a>, which means a plaintiff who has suffered injury on account of the department&rsquo;s decision. Who might that litigant be?</p>

<p>It&rsquo;s tricky. Noncompliant plans will appeal to healthier people, leaving sicker people to buy ACA-compliant health plans. The price for compliant plans will go up &mdash; but not everyone will pay that price, because the ACA caps the premiums of people who earn less than four times the poverty level. Rising premiums won&rsquo;t injure people who are protected by premium caps, so they probably won&rsquo;t have standing.</p>

<p>The best plaintiff, then, might be someone who earns too much to take advantage of the premium caps but who has a chronic condition. She couldn&rsquo;t afford to buy a noncompliant Blue Cross plan: Blue Cross would jack up her premiums because she&rsquo;s sick. And next year her premiums for an ACA-compliant plan will shoot up because healthy people will flee the market for compliant plans. She&rsquo;ll face a classic pocketbook injury, and therefore might have grounds to sue.</p>

<p>Even then, however, standing isn&rsquo;t a sure thing. The link between the insurance department&rsquo;s action and the resulting price increase might be <a href="https://scholar.google.com/scholar_case?case=14139159420627012398&amp;q=158+Idaho+874&amp;hl=en&amp;as_sdt=80000006">too attenuated</a> to satisfy the courts. The doctrine around standing is notoriously unpredictable and, in the hands of unsympathetic judges, could pose a serious obstacle. (We can be pretty sure that Idaho judges will be unsympathetic: The state <a href="https://ballotpedia.org/Judicial_selection_in_Idaho">elects its judges</a>, and the electorate dislikes the law.)</p>

<p>Nor is standing the only problem. Under Idaho law, a plaintiff <a href="https://legislature.idaho.gov/statutesrules/idstat/title67/t67ch52/sect67-5271/">must ask an agency for relief</a> before suing it. If the courts force a plaintiff to exhaust <a href="https://legislature.idaho.gov/statutesrules/idstat/title41/t41ch2/sect41-232/">her administrative remedies</a> before hearing her case, it could be stalled long enough for other states to head down the same road.</p>
<h2 class="wp-block-heading">Another option: going after Blue Cross</h2>
<p>Another approach would be to sue Blue Cross itself. Its new <a href="https://www.healthaffairs.org/do/10.1377/hblog20180215.217094/full/">&ldquo;freedom plans&rdquo;</a> would cap annual payouts at $1 million per year. A patient who busts through that cap could sue the insurer to force it to cover all of her medical expenses. The ACA forbids such caps, and in Idaho, as in other states, &ldquo;<a href="https://scholar.google.com/scholar_case?case=15420687293374506950&amp;q=138+Idaho+3+&amp;hl=en&amp;as_sdt=80000006">[t]he general rule</a> is that a contract prohibited by law is illegal and unenforceable.&rdquo; It should be a slam-dunk case.</p>

<p>A lawsuit like that, however, might have to wait until Blue Cross enforces the annual cap against someone, which could take time. Until then, it&rsquo;s hard to see what the basis for a suit against Blue Cross would be. It&rsquo;s crappy to charge the sick more for coverage, but it&rsquo;s not the sort of public nuisance that the courts will abate.</p>

<p>I don&rsquo;t mean to be too skeptical: These are early days, and inventive lawyers may come up with inventive strategies to stop the Idaho initiative. But it&rsquo;s by no means a given that a lawsuit will ever get off the ground, either in Idaho or in the inevitable copycat states. &nbsp;</p>
<h2 class="wp-block-heading">The ball is in the Trump administration’s court. Will it enforce the law?</h2>
<p>Whether red states can roll back Obamacare may therefore hinge on whether the newly installed HHS secretary, Alex Azar, decides to block Idaho&rsquo;s plans. Doing so wouldn&rsquo;t be hard. Azar could simply determine that Idaho wasn&rsquo;t enforcing the law and threaten to sanction Idaho Blue Cross. (The <a href="https://www.law.cornell.edu/uscode/text/42/300gg%E2%80%9322">maximum penalty</a> is $100 a day per enrollee, more than enough to make the plans unmarketable.) Blue Cross would undoubtedly fold.</p>

<p>That&rsquo;s where the analogy to marijuana laws breaks down. The Department of Justice really can&rsquo;t bring cases against all violators of the drug laws; it has to pick and choose how to marshal its scarce resources. HHS doesn&rsquo;t face the same constraints when it comes to enforcing key ACA provisions. A single letter to Blue Cross would do the trick.</p>

<p>Given the ease of enforcement, refusing to enforce would represent an especially clear violation of the president&rsquo;s duty to <a href="https://www.archives.gov/founding-docs/constitution-transcript">&ldquo;take care&rdquo;</a> that the laws are faithfully executed. At a recent congressional hearing, Azar seemed to <a href="https://twitter.com/StephArmour1/status/963798430173810690">admit</a> as much: &ldquo;There is a rule of law that we need to enforce.&rdquo;</p>

<p>Will the HHS head match his rhetoric with action? If not, the Affordable Care Act is in jeopardy. Idaho could be blazing a trail for Republican-controlled states to follow, bringing us back to a time when some of the sickest among us couldn&rsquo;t get health insurance &mdash; at any price.</p>

<p><em>Nicholas Bagley is a professor at the University of Michigan Law School and a contributor to&nbsp;</em><a href="http://theincidentaleconomist.com/"><em><strong>The Incidental Economist</strong></em></a><em>. Find him on Twitter&nbsp;</em><a href="https://twitter.com/nicholas_bagley?lang=en"><em><strong>@nicholas_bagley</strong></em></a><em>.</em></p>
<hr class="wp-block-separator" />
<p><a href="http://vox.com/the-big-idea">The Big Idea</a> is Vox&rsquo;s home for smart discussion of the most important issues and ideas in politics, science, and culture &mdash; typically by outside contributors. If you have an idea for a piece, pitch us at <a href="mailto:thebigidea@vox.com">thebigidea@vox.com</a>.</p>
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			<title type="html"><![CDATA[The tax bill destroys an important part of Obamacare. The states can save it.]]></title>
			<link rel="alternate" type="text/html" href="https://www.vox.com/the-big-idea/2017/12/14/16773294/obamacare-aca-states-protect-coverage-after-tax-bill" />
			<id>https://www.vox.com/the-big-idea/2017/12/14/16773294/obamacare-aca-states-protect-coverage-after-tax-bill</id>
			<updated>2017-12-14T08:40:04-05:00</updated>
			<published>2017-12-14T08:40:02-05:00</published>
			<category scheme="https://www.vox.com" term="Health Care" /><category scheme="https://www.vox.com" term="Policy" /><category scheme="https://www.vox.com" term="Politics" /><category scheme="https://www.vox.com" term="The Big Idea" />
							<summary type="html"><![CDATA[To finance a massive corporate tax cut, congressional Republicans appear poised to repeal the Affordable Care Act&#8217;s individual mandate &#8212; the requirement that Americans secure health insurance or pay a penalty. If they succeed, the human toll could be immense: The Congressional Budget Office warns that premiums will surge as healthier people opt out of [&#8230;]]]></summary>
			
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<img alt="" data-caption="The State Capitol building in Boston. Health care action could be moving to the states. | Visions of America/UIG/Getty Images" data-portal-copyright="Visions of America/UIG/Getty Images" data-has-syndication-rights="1" src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/9864697/GettyImages_144072867.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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	The State Capitol building in Boston. Health care action could be moving to the states. | Visions of America/UIG/Getty Images	</figcaption>
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<p>To finance a massive corporate tax cut, congressional Republicans appear poised to repeal the Affordable Care Act&rsquo;s individual mandate &mdash; the requirement that Americans secure health insurance or pay a penalty.</p>

<p>If they succeed, the human toll could be immense: The Congressional Budget Office <a href="https://www.cbo.gov/system/files/115th-congress-2017-2018/reports/53300-individualmandate.pdf">warns</a> that premiums will surge as healthier people opt out of the system, leaving insurers to cover a relatively sicker group of people. An estimated 13 million people could lose coverage.</p>

<p>But all is not lost. In fact, the mandate&rsquo;s demise could cement the rest of the health care law into place. That&rsquo;s because animosity toward the mandate has been the engine driving the Republicans&rsquo; years-long campaign to repeal and replace Obamacare. Without the mandate, that campaign may finally sputter out &mdash; leaving intact the ACA&rsquo;s subsidies, its prohibition on discriminating against the sick, and even the Medicaid expansion.</p>

<p>But won&rsquo;t the entire Obamacare system collapse without the mandate? Not if the states step into the breach. They&rsquo;ve got the power to patch the hole that repeal of the mandate would leave in the ACA. The most ambitious states could even take steps to strengthen the law.</p>
<h2 class="wp-block-heading">Massachusetts had an individual mandate well before the US did</h2>
<p>For starters, the states can adopt their own individual mandates to replace the one that Congress repeals. There&rsquo;s nothing stopping them. Before the ACA existed, Massachusetts had a mandate; it&rsquo;s still <a href="https://betterhealthconnector.com/about/policy-center/rules-regulations/massachusetts-individual-mandate">on the books</a>. And, as Vox&rsquo;s Sarah Kliff <a href="https://www.vox.com/2017/12/8/16753914/states-save-individual-mandate">reported</a> last week, a number of states &mdash; including California, Maryland, and Washington, as well as the District of Columbia&mdash; are toying with creating their own mandates.</p>

<p>Adopting mandates at the state level would help stabilize insurance markets, thereby keeping premiums in check and forestalling coverage losses. It would also provide a welcome source of revenue: Some people will still prefer to pay a penalty than buy insurance. Plus, the states don&rsquo;t need to stick with the precise terms of the federal mandate, which has been reviled (from different quarters) both for heavy-handedness and its ineffectuality. Stiffer state-level penalties would still be unpopular, but at least they&rsquo;d work better.</p>

<p>States with an income tax could enforce the mandate by way of a tax, as the feds now do. But states without an income tax have options, too. Their state health departments could impose the penalty as a standard-issue fine &mdash; something like a parking ticket &mdash; and enforce the fine through liens, civil penalties, and the like. Getting a driver&rsquo;s license or renewing an occupational license could be made contingent on compliance with the mandate. (Alternatively, residents could demonstrate financial hardship.)</p>

<p>Again, there&rsquo;s no legal bar to this solution. Even if the repeal goes through, Congress has no plans to forbid states to impose their own mandates. Indeed, such a rule would give the lie to Republicans&rsquo; <a href="https://perma.cc/F4QL-NJ9Q">oft-repeated claim</a> that the states should be laboratories for health-care experimentation. Meanwhile, the ACA itself will preempt only those state laws that pose an obstacle to achieving its objectives. State-level mandates <em>advance</em> the ACA&rsquo;s goals, so there&rsquo;s no problem there.</p>

<p>Those states that can&rsquo;t abide a mandate could experiment with other approaches to coaxing the healthy to buy insurance. States that run their own exchanges could automatically enroll the uninsured in a standard-issue plan. People could opt out, but many will stick with the default. (That&rsquo;s a classic behavioral-science <a href="https://www.vox.com/policy-and-politics/2017/10/9/16447752/richard-thaler-nobel-explained-economics">&ldquo;nudge.&rdquo;</a>)</p>

<p>Alternatively, states might explore lock-out periods for those who go without insurance &mdash; an approach congressional Republicans once flirted with. Although insurers are <a href="https://www.law.cornell.edu/uscode/text/42/300gg-1">required</a> to sell coverage to all comers during open enrollment, the Secretary of HHS can <a href="https://www.law.cornell.edu/uscode/text/42/18052">waive</a> the ACA rule requiring annual open enrollment periods. A state could then establish special enrollment periods available only to people who have maintained continuous coverage.</p>

<p>People whose coverage had lapsed would be allowed to enroll only after a prespecified, perhaps lengthy, period, providing an incentive to avoid going bare. A lock-out period might not work as well as a straightforward mandate, and some people who accidentally or irresponsibly allow their coverage to lapse will get screwed. But it&rsquo;s something.</p>
<h2 class="wp-block-heading">States can also restrict the skimpy “short term” plans that Trump wants to allow</h2><img src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/9864761/GettyImages_143078429.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" alt="The State Capitol Building in Carson City, Nevada. Nevada passed its version of a “public option” this year, but its governor vetoed it. But other states could pick up where Nevada left off." title="The State Capitol Building in Carson City, Nevada. Nevada passed its version of a “public option” this year, but its governor vetoed it. But other states could pick up where Nevada left off." data-has-syndication-rights="1" data-caption="The State Capitol building in Carson City, Nevada. Nevada passed a version of a “public option” this year, but its governor vetoed it. But other states could pick up where Nevada left off. | UIG/Getty Images" data-portal-copyright="UIG/Getty Images" />
<p>Finding a substitute for the mandate is only the start. As insurance expert Robert Laszewski has <a href="http://healthpolicyandmarket.blogspot.com/">observed</a>, the mandate&rsquo;s repeal will interact in vicious ways with the Trump administration&rsquo;s <a href="https://www.whitehouse.gov/the-press-office/2017/10/12/presidential-executive-order-promoting-healthcare-choice-and-competition">plan</a> to loosen restrictions on the sale of skimpy &ldquo;short-term&rdquo; plans &mdash; plans that don&rsquo;t have to comply with ACA rules. Under President Barack Obama, short-term plans couldn&rsquo;t last longer than three months. Trump wants to allow non-compliant plans to cover people year-round. Instead of a clear choice between buying comprehensive insurance and going without (and paying a penalty), there will now be an option to buy cheap plans that offer thinner coverage (and pay no penalty).</p>

<p>That option will appeal to a lot of healthy people, further driving premiums up for all the unhealthy people left behind in the standard marketplaces. But again, the states, can stanch the bleeding: Even under the ACA, they retain primary responsibility for regulating their insurance markets, meaning they can prohibit the sale of short-term plans or restore their duration maximum duration to three months, or restrict their sale only to those who earn too much to receive federal premium subsidies.</p>

<p>Yet the states should think bigger than damage control. Earlier this year, the Nevada legislature <a href="https://www.vox.com/policy-and-politics/2017/6/6/15731622/nevada-medicaid-for-all">passed a bill</a> that would have allowed people to use their ACA subsidies to buy into the state&rsquo;s Medicaid program &mdash; a one-state version of the so-called &ldquo;public option.&rdquo; The bill was vetoed by the governor, but it offers a template for other states that want to help their residents.</p>

<p>Some states might reasonably worry that a public option could drive private insurers off the exchanges. One solution would be to make the buy-in option available only to those who purchase insurance without going through the exchange. States could also experiment with allowing employers to buy Medicaid coverage for their employees, which would allow employers to take advantage of Medicaid&rsquo;s power to insist on low prices.</p>

<p>Even more ambitiously, the states could move to curtail the exorbitant market power that hospital systems and physician groups now enjoy. The might choose to curtail <a href="https://www.brookings.edu/wp-content/uploads/2016/10/sbb1.pdf">surprise billing,</a> which can when a patient goes to an in-network hospital but is billed at excessive rates by out-of-network emergency room physicians, anesthesiologists, and other doctors. California and New York have already taken steps to outlaw that abusive practice.</p>

<p>State attorneys general don&rsquo;t need to wait for the Federal Trade Commission to push back on anti-competitive mergers, either. The Massachusetts attorney general recently <a href="http://www.bostonglobe.com/business/2015/01/26/healey-says-she-prepared-bring-suit-against-partners-judge-rejects-settlement-with-coakley/QRmA2ZN498HefLbqyFb9mI/story.html">threatened to sue</a> a dominant hospital system that moved to acquire several community hospitals. Others AGs could follow her lead.</p>

<p>Finally, states could consider attacking unfair prices directly. Back in the 1970s and 1980s, eight states, mainly in the Northeast, adopted rate-setting schemes that fixed the prices hospitals could charge for their services. Those approaches were <a href="https://www.healthaffairs.org/doi/full/10.1377/hlthaff.16.1.142">largely abandoned</a> as policymakers pinned their hopes for cost control on HMOs. But as private insurers <a href="https://www.healthaffairs.org/do/10.1377/hblog20171205.607294/full/">struggle</a> to keep prices down, <a href="https://repository.law.umich.edu/cgi/viewcontent.cgi?referer=https://www.google.com/&amp;httpsredir=1&amp;article=1225&amp;context=mlr">the time may be ripe</a> to reconsider price regulation.</p>
<h2 class="wp-block-heading">States politicians have strong motivations to take up these causes</h2>
<p>So the states have options. Will they take them?</p>

<p>Even in blue states, passing a replacement mandate won&rsquo;t be easy. But it&rsquo;s sensible policy that both the insurance and hospital industries should support. Politically, a state-level mandate could be framed as part of a broader effort to resist Republican efforts to dismantle President Obama&rsquo;s legacy. That storyline won&rsquo;t work in every state, but it should resonate in some.</p>

<p>The politics in red states will be more complex, but Republican policymakers may be more flexible than their scorched-earth rhetoric suggests. They&rsquo;re about to discover that, in an unusual twist, the costs of repealing the individual mandate won&rsquo;t fall on the poor. For one thing, the Medicaid expansion will remain in place for the lowest-income Americans (at least in the 31 states that expanded). What&rsquo;s more, the ACA caps the amount that people making less than four times the poverty level have to pay to buy insurance on the exchanges.</p>

<p>Let&rsquo;s make that last point more concrete. Under the ACA&rsquo;s cap, a family of four making $80,000 per year &mdash; about three times the poverty level&mdash;will pay a maximum of <a href="https://www.kff.org/health-reform/issue-brief/explaining-health-care-reform-questions-about-health/">9.7 percent of its income</a>, or about $646 per month, for a standard &ldquo;silver&rdquo; plan. That&rsquo;s proportional cap holds <a href="https://aspe.hhs.gov/pdf-report/health-plan-choice-and-premiums-2017-health-insurance-marketplace">whether the family lives</a> in Michigan, where the unsubsidized price for family coverage is $827 per month, or in Arizona, where a similar plan costs a whopping $1,529 per month. The federal government picks up the bill for any amount over the cap.</p>

<p>Because of the premium caps, many middle-class people won&rsquo;t even notice that the mandate is gone. The true price of coverage will rise but the amount they pay in premiums won&rsquo;t budge.</p>

<p>The same isn&rsquo;t true for the affluent. A family earning $100,000 per year is expected to pay full price for its coverage. That&rsquo;s reasonable (barely) in some lower-cost states like Michigan, where the family will pay less than 10 percent of its income in premiums. But it&rsquo;s an exceptional burden in high-cost states like Arizona, where the same family will shell out more than 18 percent of its income.</p>

<p>So the surge in premiums associated with repeal of the individual mandate will hit affluent people hard. And, as you may have noticed, affluent people tend to make themselves heard during policymaking. Even in red states, then, policymakers will come under pressure to do <em>something</em> to keep premiums in check. &nbsp;</p>
<h2 class="wp-block-heading">Turning the page on repeal and replace</h2>
<p>In sum, the reckless repeal of the individual mandate could mark the beginning of a new era in the tortured American politics of health reform. Yes, Republicans will continue to fulminate about the evils of Obamacare while Democrats keep extolling the wonders of single-payer. Quietly, however, the locus of power will shift from the federal government to the states, which will get on with the hard, dull work of fixing their insurance markets.</p>

<p>That shift isn&rsquo;t costless, to be sure. More state power implies greater differences among states: Red states will lag blue states in coverage numbers.</p>

<p>But the basic structure of the ACA may be preserved from further Republican attacks. That&rsquo;s some consolation for those who believe that, for all its imperfections, we&rsquo;re better off with Obamacare than without it.</p>

<p><em>Nicholas Bagley is a professor at the University of Michigan Law School, and a contributor to&nbsp;</em><a href="http://theincidentaleconomist.com/"><em><strong>The Incidental Economist</strong></em></a><em>. Find him on Twitter&nbsp;</em><a href="https://twitter.com/nicholas_bagley?lang=en"><em><strong>@nicholas_bagley</strong></em></a><em>.</em></p>
<hr class="wp-block-separator" />
<p><a href="http://vox.com/the-big-idea">The Big Idea</a> is Vox&rsquo;s home for smart discussion of the most important issues and ideas in politics, science, and culture &mdash; typically by outside contributors. If you have an idea for a piece, pitch us at <a href="mailto:thebigidea@vox.com">thebigidea@vox.com</a>.</p>
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			<author>
				<name>Nicholas Bagley</name>
			</author>
			
			<title type="html"><![CDATA[Trump’s ominous threat to withhold payment from health insurers, explained]]></title>
			<link rel="alternate" type="text/html" href="https://www.vox.com/the-big-idea/2017/3/29/15107836/lawsuit-aca-payments-reimbursement-unconstitutional" />
			<id>https://www.vox.com/the-big-idea/2017/3/29/15107836/lawsuit-aca-payments-reimbursement-unconstitutional</id>
			<updated>2017-08-02T10:07:58-04:00</updated>
			<published>2017-08-02T10:07:54-04:00</published>
			<category scheme="https://www.vox.com" term="Explainers" /><category scheme="https://www.vox.com" term="Health Care" /><category scheme="https://www.vox.com" term="Policy" /><category scheme="https://www.vox.com" term="Politics" /><category scheme="https://www.vox.com" term="The Big Idea" />
							<summary type="html"><![CDATA[In April, Nicholas Bagley explained how President Trump possesses the power &#8220;to blow up insurance markets across the country.&#8221; Trump recently renewed his threats to do just that. Unless and until Congress enacts a replacement for the Affordable Care Act, President Trump will be stuck implementing a law he detests. He has&#160;predicted&#160;that &#8220;ObamaCare will explode,&#8221; [&#8230;]]]></summary>
			
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<img alt="" data-caption="Health and Human Services Secretary Tom Price (left), finds himself in a remarkably awkward legal situation: defending the constitutionality of ACA payments the House has sued over. | Olivier Douliery / Pool / Getty Images" data-portal-copyright="Olivier Douliery / Pool / Getty Images" data-has-syndication-rights="1" src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/8244615/GettyImages_657433382__1_.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
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	Health and Human Services Secretary Tom Price (left), finds himself in a remarkably awkward legal situation: defending the constitutionality of ACA payments the House has sued over. | Olivier Douliery / Pool / Getty Images	</figcaption>
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<p><em>In April, Nicholas Bagley explained how President Trump possesses the power &ldquo;to blow up insurance markets across the country.&rdquo; Trump recently renewed his threats to do just that.</em></p>

<p>Unless and until Congress enacts a replacement for the Affordable Care Act, President Trump will be stuck implementing a law he detests. He has&nbsp;<a href="https://twitter.com/realDonaldTrump/status/845645916732358656">predicted</a>&nbsp;that &ldquo;ObamaCare will explode,&rdquo; and in his frustration he will be sorely tempted to do everything in his power to make that prediction come true.</p>

<p>He may still have his chance. A pending court case,&nbsp;<em>House v. Price</em>&nbsp;(n&eacute;e&nbsp;<em>House v.</em>&nbsp;<em>Burwell&nbsp;&mdash;&nbsp;</em>and much turns on the name change), has given the administration a bomb it could use to blow up insurance markets across the country. At stake is the legality of the payments the federal government makes to insurance companies to help cover the medical expenses of low-income people.</p>

<p>Yanking those payments carries huge political risks. Trump&rsquo;s full-throated support for a reckless replacement bill has convinced millions of Americans that he&rsquo;s intent on taking away their insurance. If their insurance&nbsp;<em>does</em>&nbsp;go away, they&rsquo;ll probably blame him. It&rsquo;s his presidency, and his problem.</p>

<p>Trump, however, has actively undercut legislative efforts to put the contested payments on a sound legal footing. The administration has tried to patch over the problem by telling members of Congress that it will keep making the payments, but insurers are skittish, even panicky. They have watched Trump <a href="https://www.wsj.com/articles/trump-threatens-to-withhold-payments-to-insurers-to-press-democrats-on-health-bill-1492029844">publicly toy</a> with the idea of stopping the payments in an effort to extract concessions from Democrats. How can they be sure he won&rsquo;t eventually follow through?</p>

<p>Insurers must decide very soon whether they want to participate on Obamacare&rsquo;s exchanges in 2018. Lingering uncertainty over the legality of the payments, together with the Trump administration&rsquo;s unreliability, will lead many of the to head for the hills. If they do, there&rsquo;s a good chance the Trump administration will have a political catastrophe on its hands.</p>
<h2 class="wp-block-heading">The House claimed certain governmental payments to insurance companies were unconstitutional</h2>
<p>How did it come to be that Trump holds the power to blow up the individual markets?In July 2014, the Republican-controlled House of Representatives voted to&nbsp;<a href="http://theincidentaleconomist.com/can-the-house-sue-over-the-employer-mandate/">sue</a>&nbsp;the Obama administration, resulting in the case <em>House v. Price</em>. The House accused the administration of making billions of dollars in illegal &ldquo;cost-sharing&rdquo; payments to insurance companies.</p>

<p>The Affordable Care Act provides two kinds of subsidies to help low- and middle-income people pay for insurance on the exchanges. Premium subsidies defray the cost of premiums for people making less than four times the poverty level. For those who make less than that, cost-sharing reductions help cover the costs of deductibles and other out-of-pocket spending.</p>

<p>Although they serve similar goals, the two subsidies function in different ways. The premium subsidies are refundable tax credits that go to individuals: They are administered through the tax code. For cost-sharing reductions, the ACA requires insurers to cut their lowest-income customers a break on their out-of-pocket spending. In turn, the statute says the federal government will, reimburse insurers for doing so.</p>

<p>Here&rsquo;s the catch. The Constitution says that &ldquo;[n]o Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.&rdquo; Under the persnickety rules governing appropriations law, it&rsquo;s not enough for a statute to order the government to make a payment. Congress must adopt a law that&nbsp;<a href="https://www.law.cornell.edu/uscode/text/31/1301">specifically appropriates</a>&nbsp;the money to make that payment. And while the Affordable Care Act does link the premium subsidies to an existing appropriation, it&rsquo;s silent about the cost-sharing reductions.</p>

<p>In the view of House Republicans, that makes the reimbursements illegal.</p>
<h2 class="wp-block-heading"><strong>The lawsuit was largely unprecedented, yet it gained traction</strong></h2>
<p>At first, the Republicans&rsquo; suit, filed in November 2014, was viewed as a political stunt. Fights over the appropriations power have never been hashed out in federal court, and for good reason: The political branches are supposed to work out this kind of dispute between themselves, using the tools the Constitution has assigned to them. Congress has lots of tools to bring the president to heel. It can pass new laws. It can launch investigations. It can bargain over other administration objectives. It can even move to impeach. At times, some of these options may not be politically feasible. But that just means Congress <em>won&rsquo;t</em> use its power, not that it lacks the power to respond to executive infractions.</p>

<p>That&rsquo;s why Congress has never been found to have standing to sue the president over a question pertaining to appropriations. Otherwise, lots of disputes that should be resolved by our elected representatives would be decided by cloistered judges with lifetime appointments &mdash; which isn&rsquo;t healthy for a democracy.</p>

<p>On the merits, however, the House of Representatives&nbsp;<a href="http://repository.law.umich.edu/cgi/viewcontent.cgi?article=2816&amp;context=articles#page=15">had a point</a>.</p>

<p>The Obama administration spotted the appropriations problem before the exchanges went live, and it went to Congress to ask for the cost-sharing money. Caught up in anti-Obamacare fever, however, Congress refused. That put the Obama administration in a bind. Either it could find some legal justification for making the payments or it could concede that Republicans were right &mdash; and watch the exchanges fall apart as insurers withdrew for lack of reimbursement.</p>

<p>Unsurprisingly, the administration opted to mount a legal defense. Unfortunately, it was a terrible one, as I argued&nbsp;<a href="http://repository.law.umich.edu/cgi/viewcontent.cgi?article=2816&amp;context=articles#page=15">at the time</a>. Administration lawyers proposed that the appropriation for the premium subsidies could do double duty as an appropriation for the cost-sharing reductions. Both types of subsidies serve the same purpose, they argued: helping people afford insurance coverage. So in the administration&rsquo;s view, Congress must have intended the same appropriation to serve for both.</p>
<h2 class="wp-block-heading"><strong>The House had identified a genuine legal problem</strong></h2>
<p>This, as I say, was not a strong argument. Before the Affordable Care Act was enacted, an&nbsp;<a href="https://www.law.cornell.edu/uscode/text/31/1324">existing, permanent appropriation</a>&nbsp;gave the IRS the power to issue tax refunds. When Congress passed Obamacare, it said the permanent appropriation for tax refunds would also cover premium subsidies &mdash; which are, after all, tax credits.</p>

<p>The Obama administration ended up arguing that a permanent appropriation governing tax refunds allowed it to make the cost-sharing payments. But why? The cost-sharing reductions aren&rsquo;t tax credits. They&rsquo;re straight-up payments to insurance companies. It&rsquo;s a big stretch to read an appropriation that governs refunds for individual taxpayers as also covering payments to insurers.</p>

<p>Nonetheless, most observers expected the House&rsquo;s lawsuit to be dismissed on standing grounds: They expected the court to say that this was a classic political dispute, not a federal court case. The House, however, got lucky, drawing a district court judge who was sympathetic to its argument that unless the court intervened, President Obama could keep flouting the Constitution with impunity.</p>

<p>And so the court&nbsp;<a href="https://ecf.dcd.uscourts.gov/cgi-bin/show_public_doc?2014cv1967-41">ruled</a>&nbsp;that the House had standing. Six months later, in May 2016, the court issued a second opinion on the merits: It&nbsp;<a href="http://hr.cch.com/hrw/USHouseofRepresentativesvBurwell051216.pdf">held</a>&nbsp;that the cost-sharing payments were unconstitutional and ordered the payments stopped.</p>

<p>Had the district court&rsquo;s injunction taken immediate effect, it would have created havoc in the insurance markets. But in issuing its decision, the district court stayed its injunction &mdash; that is, put it on pause &mdash; to allow the government to appeal.</p>

<p><strong>The results of a certain presidential election changed the legal calculus</strong></p>

<p>Shortly after the Obama administration filed its opening brief to the appeals court, however, Donald J. Trump won the presidential election. With the appointment of Tom Price to run the Department of Health and Human Services, succeeding Sylvia Mathews Burwell, the tenor of the case changed significantly (as did its name). It&rsquo;s been languishing ever since.</p>

<p>The House of Representatives asked for the appeals court to put the case on hold, arguing that health care policy was likely to change significantly in the new administration. The appeals court agreed to do so, and ordered status reports every 90 days.</p>

<p>When Republican legislators unveiled the American Health Care Act, it became clear they had big plans for the cost-sharing subsidies: They wanted to eliminate them altogether by 2020. If the Act had passed, most observers think it&rsquo;s likely that Congress would have funded the cost-sharing payments during the brief transition period.</p>

<p>But Republicans&rsquo; repeal and replace efforts have foundered. In the meantime, <em>House v. Price&nbsp;</em>offers a back door to undoing Obamacare&rsquo;s exchanges.</p>

<p>To destabilize the ACA insurance markets, all the administration would have to do is dismiss its appeal and stop fighting the case. At that point, the district court&rsquo;s injunction &mdash; its order to stop making the illegal cost-reimbursement payments &mdash;would spring into effect.</p>

<p>Faced with enormous financial losses, many insurers would flee the market. Recall that the Affordable Care Act would still require insurers to cut their low-income enrollees a break &mdash; it&rsquo;s just that insurers wouldn&rsquo;t get reimbursed. The only way to make the numbers work would be to jack up premiums on everyone. In that scenario, the Urban Institute&nbsp;<a href="http://www.urban.org/sites/default/files/alfresco/publication-pdfs/2000590-The-Implications-of-a-Finding-for-the-Plaintiffs-in-House-v-Burwell.pdf"><strong>estimates</strong></a><strong> </strong>that premiums would rise, on average, by $1,040, and that hundreds of thousands of people would lose coverage.</p>

<p><strong>The Trump administration&rsquo;s vexing choice</strong></p>

<p>The Trump administration may well decide that&rsquo;s too politically risky. If so, the conventional wisdom is that the House of Representatives and the administration could cut some kind of deal to keep the cost-sharing payments flowing.</p>

<p>But that may be trickier to pull off than most people think.</p>

<p>The most straightforward fix would be for Congress to appropriate the damn money. Democrats and some Republicans would like to do just that. But during debates in April week over an appropriations measure to avoid a government shutdown, Speaker of the House Paul Ryan ruled that out. &ldquo;We aren&rsquo;t doing that,&rdquo; he <a href="http://www.washingtonexaminer.com/paul-ryan-rules-out-obamacare-subsidies-in-spending-bill/article/2621314">said</a>. &ldquo;That&rsquo;s not in an appropriations bill. That&rsquo;s something separate that the administration does.&rdquo; As an explanation, that&rsquo;s nonsensical, but there may be strategic logic: Ryan may be helping Trump use the cost-sharing reductions as a bargaining chip.</p>

<p>If Congress won&rsquo;t appropriate the money, the House and the Trump administration could try to bury the hatchet and settle the case. They might say, in effect, &ldquo;We&rsquo;ve agreed between ourselves to drop the lawsuit and that we&rsquo;re better off without the district court&rsquo;s injunction.&rdquo;</p>

<p>Now that the case is on appeal, however, it&rsquo;s not so easy as that. The Supreme Court has&nbsp;<a href="https://scholar.google.ch/scholar_case?case=2540139695402941061&amp;q=u.s.+v.+bancorp&amp;hl=en&amp;as_sdt=2006">said</a>&nbsp;that appeals courts can&rsquo;t overturn district court orders when parties settle their cases, even if both parties ask nicely.</p>

<p>So to get out from under the district court&rsquo;s injunction, the parties may have to go back to the district court. But the court can modify its prior order&nbsp;<a href="https://scholar.google.ch/scholar_case?case=6468982625941805364&amp;q=agostini+v.+felton&amp;hl=en&amp;as_sdt=2006">only if</a>&nbsp;there&rsquo;s been a &ldquo;significant change either in factual conditions or in law.&rdquo;</p>

<p>Does Trump&rsquo;s election qualify as such a &ldquo;significant change &hellip; in factual conditions&rdquo;? Perhaps. Certainly it would be strange to keep an injunction in place when no one on either side of the legal fight wanted it anymore. Judges don&rsquo;t usually ask too many questions when opposing parties agree about something.</p>

<p>But still, there&rsquo;s something fishy about the asking the court to vacate the injunction &mdash; and allowing the payments to proceed. Both the district court and the House of Representatives still believe (correctly, in my view) that it&rsquo;s unconstitutional for the executive branch to keep making the cost-sharing payments. The Trump administration&rsquo;s lawyers likely share that assessment; indeed, Attorney General Jeff Sessions has <a href="http://www.washingtonexaminer.com/attorney-general-jeff-sessions-insurer-payments-unconstitutional/article/2620718">said publicly</a> that the suit in <em>House v. Price </em>&ldquo;has validity.&rdquo;</p>

<p>The only reason to vacate the injunction, then, is because it&rsquo;d be awfully convenient to keep making the cost-sharing payments &mdash; even though the judiciary, the executive, and the legislature all think those payments are unconstitutional.</p>

<p>The judge might well balk. Indeed, she might be offended at the effort to enlist the federal courts in an unconstitutional scheme.</p>

<p><strong>The best option might be to just stall. But will the courts go for it?</strong></p>

<p>So what&rsquo;s likely to happen? Given the Trump administration&rsquo;s statement that it will keep making the cost-sharing payments, I expect the parties will ask the appeals court to keep the case on hold indefinitely. That may work, at least for a time. The payments would keep flowing, and the appropriations fight would recede into the background.</p>

<p>But the appeals court may not have infinite patience for that gambit. It&rsquo;s one thing to pause an appeal while Congress or the executive branch considers its options after a change in administration. It&rsquo;s another thing to keep a case on ice because President Trump wants to keep making unconstitutional payments.</p>

<p>Of greater concern, the case&rsquo;s very existence makes insurers nervous. Until its resolution,&nbsp;<em>House v. Price&nbsp;</em>hangs over the individual market like the sword of Damocles, giving a mercurial president the power to destabilize the exchanges with the stroke of a pen.</p>

<p>Worse still, Trump appears to believe that his control over cost-sharing payments gives him a negotiating advantage. The desire to retain that perceived advantage likely explains his resistance to congressional efforts to appropriate the cost-sharing money. What Trump seems not to grasp, however, is that he only has leverage if his threat to withhold cost-sharing payments is credible. But if the threat is credible, insurers can&rsquo;t afford to run the risk that the markets might collapse around them.</p>

<p>In other words, Trump can make a credible threat or he can have viable insurance markets. He can&rsquo;t have both.</p>

<p>All of which underscores the folly of allowing the House of Representatives to bring this lawsuit in the first place.&nbsp;<em>House v. Burwell</em>&nbsp;was once a rallying cry for conservatives. Now&nbsp;<em>House v. Price&nbsp;</em>may become an albatross around Republicans&rsquo; necks.</p>

<p>Meanwhile, the health insurance of millions of Americans hangs in the balance.</p>

<p><em>Nicholas Bagley is a professor at the University of Michigan Law School, and a contributor to&nbsp;</em><a href="http://theincidentaleconomist.com/"><em><strong>The Incidental Economist</strong></em></a><em>.&nbsp;Find him on Twitter&nbsp;</em><a href="https://twitter.com/nicholas_bagley?lang=en"><em><strong>@nicholas_bagley</strong></em></a><em>.</em></p>
<hr class="wp-block-separator" />
<p><a href="http://vox.com/the-big-idea">The Big Idea</a> is Vox&rsquo;s home for smart, often scholarly discussion of the most important issues and ideas in politics, science, and culture &mdash; typically written by outside contributors. If you have an idea for a piece, pitch us at <a href="mailto:thebigidea@vox.com">thebigidea@vox.com</a>.</p>
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			<author>
				<name>Nicholas Bagley</name>
			</author>
			
			<title type="html"><![CDATA[Crazy waivers: the Senate bill invites states to gut important health insurance rules]]></title>
			<link rel="alternate" type="text/html" href="https://www.vox.com/the-big-idea/2017/6/23/15862268/waivers-federalism-senate-bill-essential-benefits" />
			<id>https://www.vox.com/the-big-idea/2017/6/23/15862268/waivers-federalism-senate-bill-essential-benefits</id>
			<updated>2017-06-28T11:20:09-04:00</updated>
			<published>2017-06-23T13:10:02-04:00</published>
			<category scheme="https://www.vox.com" term="Politics" /><category scheme="https://www.vox.com" term="The Big Idea" />
							<summary type="html"><![CDATA[With the release of the Better Care Reconciliation Act, the Senate has finally shown its cards. Much will and should be made of how the bill, if adopted, would deprive millions of people of health insurance in order to finance huge tax cuts for the wealthy. But the bill is troubling in another respect: It [&#8230;]]]></summary>
			
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<img alt="" data-caption="Under a little-noticed provision of the Senate bill, Secretary of Health and Human Services Tom Price would have to rubber-stamp virtually any state health-care “reform” | NurPhoto / Getty" data-portal-copyright="NurPhoto / Getty" data-has-syndication-rights="1" src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/8740119/GettyImages_679197880.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
	<figcaption>
	Under a little-noticed provision of the Senate bill, Secretary of Health and Human Services Tom Price would have to rubber-stamp virtually any state health-care “reform” | NurPhoto / Getty	</figcaption>
</figure>
<p>With the release of the <a href="https://www.vox.com/2017/6/22/15847336/full-text-read-senate-republican-ahca-bill">Better Care Reconciliation Act</a>, the Senate has finally shown its cards. Much will and should be made of how the bill, if adopted, would deprive millions of people of health insurance in order to finance huge tax cuts for the wealthy.</p>

<p>But the bill is troubling in another respect: It affords states the immense, hidden power to eliminate some of the Affordable Care Act&rsquo;s most critical financial protections.</p>

<p>How does it accomplish this? Nestled in Obamacare is a <a href="https://www.law.cornell.edu/uscode/text/42/18052">provision</a> allowing states to seek waivers from some of the law&rsquo;s most important rules, including rules requiring insurers to cover certain &ldquo;essential&rdquo; health benefits and imposing annual caps on out-of-pocket spending. The point was to allow states to experiment with alternative approaches to achieving the goals of health reform: improving coverage and lowering costs.</p>

<p>That&rsquo;s why the waivers haven&rsquo;t been given out like candy. Under the Affordable Care Act, a state has to show that its alternative plan would allow it to cover as many people, with coverage as generous, without increasing federal spending. Only if a state met that demanding triple standard could it take the money allocated for the ACA and chart its own course.</p>
<h2 class="wp-block-heading">The Senate bill requires the secretary of health and human services to say yes to state experimentation of virtually any kind</h2>
<p>The Senate bill retains this waiver provision &mdash; but removes the guardrails that ensured state-based alternatives would offer strong coverage. Under the Senate bill, to get a waiver, a state doesn&rsquo;t have to demonstrate anything about coverage. Instead, it just has to show that the plan won&rsquo;t &ldquo;increase the federal deficit.&rdquo; Once a state makes that showing, the bill is explicit: The secretary of health and human services &ldquo;shall&rdquo; approve the plan.</p>

<p>Not &ldquo;may&rdquo; approve the plan &mdash; &ldquo;shall.&rdquo; This is a crucial legal distinction. The Supreme Court has <a href="https://scholar.google.ch/scholar_case?case=11087226932629516688&amp;q=national+home+builders+v.+wildlife+alito&amp;hl=en&amp;as_sdt=2006">squarely held</a> that this sort of mandatory language means what it says: If the condition is satisfied, the secretary has no choice but to give his approval.</p>

<p>That could lead to some bizarre consequences. What&rsquo;s stopping a state from submitting a half-baked plan for a high-risk pool that will lead millions of people to lose coverage? Or, for that matter, from using Obamacare money to fund public schools or affordable housing? According to the Senate bill as written, the secretary would have to approve plans like that so long as they don&rsquo;t increase the federal deficit.</p>

<p>True, the bill says that a state must submit a &ldquo;description&rdquo; of how its plan would &ldquo;take the place&rdquo; of the rules it waives, including the &ldquo;alternative means&rdquo; that the plan will use to increase access to coverage, reduce premiums, and increase enrollment. But the description has no legal bearing on whether to grant the waiver. Again, if the state&rsquo;s plan doesn&rsquo;t increase the deficit, the secretary has to approve it. Period.</p>
<h2 class="wp-block-heading">The bill lets governors concoct new health care plans, without involving legislatures</h2>
<p>The bill goes further to grease the wheels for waivers. Under Obamacare, a state had to pass a law in support of the proposed waiver, which meant legislatures had to give their approval before the state could experiment with novel approaches to health insurance. The Senate bill would cut legislatures out of the equation. Governors, together with their insurance commissioners, could devise new health care plans on their own. (They would only have to &ldquo;certify&rdquo; that they have the authority to implement the plan &mdash; a low hurdle.) The federal government must then review the waiver request on an expedited basis.</p>

<p>And once a waiver is granted, the Senate bill says that the federal government cannot terminate the waiver, <em>no matter what</em>. It is hard to overstate how unusual &mdash; even unique &mdash; this is. When the federal government offers money to states, it places conditions on how the states are to use that money &mdash; and reserves the right <a href="http://scholarship.law.georgetown.edu/facpub/1394/">to cut off the states</a> if they fail to adhere to those conditions. The cutoff threat is essential to prevent state abuse of federal funds.</p>
<figure class="wp-block-pullquote alignleft"><blockquote><p>States could exempt themselves entirely from the rule requiring coverage of the essential health benefits — a change from the House bill</p></blockquote></figure>
<p>The Senate bill removes that threat. It says that a waiver &ldquo;may not be cancelled&rdquo; before its expiration. If state officials blow the Obamacare money on cocaine and hookers, there&rsquo;s apparently nothing the federal government can do about it. At the same time, the bill expands the duration of waivers from five years to eight years. The upshot, then, is that the next president won&rsquo;t be able to renegotiate any waivers granted during the Trump administration, no matter how badly a given state might have abused its waiver.</p>

<p>So any state that wants a waiver can get one; federal funding can be used for virtually any purpose; and the federal government has no power to discipline states that abuse the federal money.</p>

<p>Which parts of the Affordable Care Act could be waived? The Senate bill would retain <em>some </em>limits. It wouldn&rsquo;t, for example, allow states to waive the prohibition on discriminating on the basis of preexisting conditions. But it would allow states to remove caps on out-of-pocket spending for exchange plans. Under Obamacare, an individual with insurance can be asked to pay a <a href="https://www.healthcare.gov/glossary/out-of-pocket-maximum-limit/">maximum</a> of $7,150 out of pocket for her health care; for families, the <a href="https://www.healthcare.gov/glossary/out-of-pocket-maximum-limit/">cap</a> is $14,300. If those caps are eliminated, the sky is the limit on what you might be asked to pay.</p>
<h2 class="wp-block-heading">Goodbye, essential benefits?</h2>
<p>What&rsquo;s more, states could exempt themselves entirely from the rule requiring coverage of the essential health benefits &mdash; a change from the bill the House enacted last month, which required states to identify an <a href="http://docs.house.gov/billsthisweek/20170424/MacArthur%20Amendment.pdf">alternative list</a> of essential benefits. Without that rule in place, many insurers on the exchanges are likely to drop their coverage for maternity services and for the treatment of substance use disorders, among other benefits.</p>

<p>Waiving the essential health benefits rule won&rsquo;t <em>directly </em>affect most of the health plans that people get as a fringe benefit of employment. Under Obamacare, the rule doesn&rsquo;t apply to health plans from large employers. But a waiver would have enormous <em>indirect </em>effects on employer-sponsored coverage.</p>

<p>Here&rsquo;s why: In one of its most popular provisions, the Affordable Care Act <a href="https://www.law.cornell.edu/uscode/text/42/300gg-11">prohibited</a> all health plans, including those offered by employers, from imposing annual and lifetime limits on coverage. These limits were common before the advent of health reform, and had especially harsh consequences for people, including children, with debilitating chronic illnesses, as Vox&rsquo;s Sarah Kliff has <a href="https://www.vox.com/policy-and-politics/2017/5/4/15539010/ahca-lifetime-limits">movingly documented</a>.</p>

<p>The ban on annual and lifetime limits was thus a boon even for the 159 million people who get their coverage through their employers. But the waivers contemplated under the Senate bill could wipe out the ban on such limits. Under the Affordable Care Act, the ban on lifetime and annual limits <a href="https://www.law.cornell.edu/uscode/text/42/300gg-11">applies</a> <em>only</em> to those benefits that are considered &ldquo;essential.&rdquo; If a state gets a waiver saying that <em>no </em>benefits would be considered essential &mdash; which was the status quo prior to Obamacare &mdash; insurers could impose lifetime and annual limits on <em>all </em>services.</p>
<h2 class="wp-block-heading">If one state weakens health insurance rules, that could have ripple effects in every state</h2>
<p>It gets worse. In general, federal law attempts to create a single, nationwide set of rules for large employers that offer health coverage. That&rsquo;s why, as Matt Fiedler at Brookings has <a href="https://www.brookings.edu/2017/05/02/allowing-states-to-define-essential-health-benefits-could-weaken-aca-protections-against-catastrophic-costs-for-people-with-employer-coverage-nationwide/">pointed out</a>, &ldquo;current <a href="https://www.federalregister.gov/documents/2016/10/31/2016-26162/excepted-benefits-lifetime-and-annual-limits-and-short-term-limited-duration-insurance">regulations</a> and <a href="https://www.cms.gov/cciio/resources/fact-sheets-and-faqs/aca_implementation_faqs18.html">guidance</a> permit large employer plans to apply <em>any state</em>&rsquo;s definition of essential health benefits for the purposes of determining the scope of the ban on annual and lifetime limits.&rdquo;</p>

<p>So imagine that Texas were to get a waiver from the essential health benefits rule. Employers <em>in every state</em> could then adopt Texas&rsquo;s definition of what counts as essential &mdash; which is to say, nothing. A single state could thus wipe out annual and lifetime limits across the whole country, making a mockery of federalism, where each state is supposed to be able to make decisions for itself.</p>

<p>Although the Trump administration could tighten its regulations to mean that Texas&rsquo;s waiver would apply only to employers in Texas, it isn&rsquo;t likely to do so. Even if it did, waivers would apply within any state that chose to grant them &mdash; meaning that the Senate&rsquo;s bill would still expose millions of families that get coverage through their employers to financial catastrophe.</p>

<p>In short, the waivers available under the Senate bill are breathtaking in scope: not just <a href="http://columbialawreview.org/content/in-defense-of-big-waiver/">&ldquo;big waiver,&rdquo;</a> as some lawyers call the emerging system that lets states opt out of government rules, but &ldquo;waiver unlimited.&rdquo; It&rsquo;s not clear that the Senate appreciates what it&rsquo;s doing; indeed, it&rsquo;s not even clear that rules governing waivers can be included in a reconciliation bill.</p>

<p>But if the Senate parliamentarian decides that they can be included, and the Better Care Reconciliation Act of 2017 becomes law, its waivers will be a backdoor method for undoing some of Obamacare&rsquo;s most popular and significant protections.</p>

<p><em>Nicholas Bagley is a professor at the University of Michigan Law School. Find him on Twitter </em><a href="https://twitter.com/nicholas_bagley?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor"><em>@nicholas_bagley</em></a><em>.</em></p>
<hr class="wp-block-separator" />
<p><a href="http://vox.com/the-big-idea">The Big Idea</a> is Vox&rsquo;s home for smart discussion of the most important issues and ideas in politics, science, and culture &mdash; typically by outside contributors. If you have an idea for a piece, pitch us at <a href="mailto:thebigidea@vox.com">thebigidea@vox.com</a>.</p>
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			<entry>
			
			<author>
				<name>Nicholas Bagley</name>
			</author>
			
			<title type="html"><![CDATA[Shifting health care reform onto the states makes sense, but the Republican plan botches the job]]></title>
			<link rel="alternate" type="text/html" href="https://www.vox.com/the-big-idea/2017/3/8/14852576/aca-ahca-states-federalism-health-care-compromise" />
			<id>https://www.vox.com/the-big-idea/2017/3/8/14852576/aca-ahca-states-federalism-health-care-compromise</id>
			<updated>2017-03-08T11:00:49-05:00</updated>
			<published>2017-03-08T10:00:07-05:00</published>
			<category scheme="https://www.vox.com" term="Politics" /><category scheme="https://www.vox.com" term="The Big Idea" />
							<summary type="html"><![CDATA[You&#8217;ve heard it time and again: The Affordable Care Act was a federal takeover of the health care system, an overweening piece of legislation that President Barack Obama shoved down the throats of a balky public on a party-line vote. For years, Republicans have deployed themes of federal arrogance and overreach to underwrite their attacks [&#8230;]]]></summary>
			
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<img alt="" data-caption="House Speaker Paul Ryan introduces the American Health Care Act | Chip Somodevilla / Getty" data-portal-copyright="Chip Somodevilla / Getty" data-has-syndication-rights="1" src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/8116453/GettyImages_649341198.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
	<figcaption>
	House Speaker Paul Ryan introduces the American Health Care Act | Chip Somodevilla / Getty	</figcaption>
</figure>
<p>You&rsquo;ve heard it time and again: The Affordable Care Act was a <a href="http://insurance.ohio.gov/Consumer/Documents/KT%20McCarthy%20Response%20FINAL%20(002).pdf">federal takeover</a> of the health care system, an overweening piece of legislation that President Barack Obama shoved down the throats of a balky public on a party-line vote. For years, Republicans have deployed themes of federal arrogance and overreach to underwrite their attacks on health reform.</p>

<p>Now the Republicans have an alternative, <a href="https://housegop.leadpages.co/healthcare/">the American Health Care Act</a>. Part of its appeal, they say, is that it returns authority to the states. Speaker of the House Paul Ryan&rsquo;s earlier template for the legislation <a href="http://abetterway.speaker.gov/?page=health-care">makes the case</a> concisely: The states &ldquo;should be empowered to make the right tradeoffs between consumer protections and individual choice, not regulators in Washington.&rdquo;</p>

<p>Ryan&rsquo;s assertion raises an implicit challenge, one that Republicans themselves have not wholly thought through: Why bother with national health reform at all? At the core of our federal system is the principle that the states should retain control over their own affairs unless there&rsquo;s good reason for Washington&rsquo;s involvement. Yet the ACA is a federal statute, and the progressive push for health reform has had a doggedly national focus. Even the Republican &ldquo;replacement&rdquo; stops well short of total devolution to the states. Why?</p>

<p>The question is more challenging than health reform&rsquo;s supporters generally acknowledge. There&rsquo;s a kernel of truth to the claim that Obamacare needlessly impinged on state prerogatives. But the question does have an answer. Because of underappreciated legal constraints on their ability to tax and spend, the states can&rsquo;t go it alone. The federal government really does have to take the lead.</p>

<p>A more refined understanding of the need for federal action serves as a rebuke to those <a href="https://thefederalist.com/2017/02/28/congress-fix-obamacare-giving-health-care-back-states/">who claim</a> Congress can just wash its hands of health reform. And it offers a yardstick against which to measure the new American Health Care Act, which would leave intact the very obstacles that have long prevented the states from tackling reform on their own. Unless Republicans change their approach, their talk about federalism should be seen for what it is: empty rhetoric that masks a refusal to allow any level of government to achieve near-universal coverage.</p>
<h2 class="wp-block-heading">State-by-state reform might have more effectively built public support for change</h2>
<p>Strictly as a strategic matter, the campaign for national health reform needs some defending. On at least a half-dozen occasions during the 20th century, federal reform efforts had gone down in flames. Massachusetts&rsquo;s coverage expansion in 2006 seemed to offer a <a href="http://content.healthaffairs.org/content/27/3/725.full">more promising path</a>: Maybe supporters of reform should rack up some wins in the states before tackling the issue at the national level.</p>

<p>By way of comparison, consider the march to same-sex marriage. When the Supreme Court invalidated state bans on same-sex marriage in <em>Obergefell v. Hodges</em>, fully 35 states already allowed it. Before Obamacare, in contrast, only two deep-blue states had significantly expanded coverage, Massachusetts and Hawaii. Judged solely on that metric, the progressive commitment to a national solution seemed premature.</p>

<p>Nor was there a self-evident functional case for federal intervention. It makes a lot of sense for the federal government to act, for example, when states can impose costs &mdash; &ldquo;externalities,&rdquo; in the economic jargon &mdash; onto other states. Federal environmental laws, for example, aim to prevent states from sending their air or water pollution to their neighbors.</p>

<p>But concerns about externalities can&rsquo;t justify health reform. If New York declines to adopt near-universal coverage, that doesn&rsquo;t hurt Connecticut or New Jersey. The country can tolerate a patchwork of state insurance rules. Indeed, because the federal government has generally <a href="https://www.law.cornell.edu/uscode/text/15/1011">stayed out</a> of the business of regulating insurance, it already does.</p>

<p>Nor are states locked in a race to the bottom that prevents them from embracing health reform. We might see such a race develop if, for example, a state&rsquo;s adoption of a coverage expansion led sick people to flock to the state. If that happened, no state would want to be the first mover, even if most of the states would prefer to expand coverage.</p>

<p>But the data tells us that sick people rarely move in response to coverage expansions. In a 2014 <a href="http://content.healthaffairs.org/content/33/1/88.abstract">study</a>, two Harvard researchers examined migration patterns in response to Medicaid expansions in four states. They found &ldquo;no evidence of significant migration effects.&rdquo; A similar 2016 <a href="http://onlinelibrary.wiley.com/doi/10.1002/pam.21952/abstract">study</a> estimates &ldquo;that the migration effect of Medicaid is very close to zero,&rdquo; a finding echoed in <a href="https://www.jstor.org/stable/1061423">other research</a>.</p>

<p>Other arguments for federal intervention also fare poorly. In some circumstances, national action is thought necessary to prevent states from discriminating against historically disadvantaged minority groups. Think here of the Voting Rights Act, which is supposed to stop states from jerry-rigging their voting rules to dilute the political power of blacks or Latinos.</p>
<h2 class="wp-block-heading">Is there a civil rights case for federal oversight of health care?</h2>
<p>It&rsquo;s hard &mdash; not impossible, but hard &mdash; to see health reform as analogous to a civil rights statute. Yes, members of minority groups benefit disproportionately from coverage expansions. And yes, states might resist expansions partly because of insensitivity to minorities&rsquo; interests. But the same can be said in many other policy domains. Take education, for example. Many states can (and do) rely on property taxes to finance local schools. Wealthier communities get well-funded schools; minority communities, not so much.</p>

<p>Appalling as that might be, it&rsquo;s not generally thought sufficient reason for a federal takeover of public schools. Outside the enclave of federally protected rights, the risk that states might behave badly has generally not been thought an adequate justification for national action. If it were, lingering discrimination would be reason enough to oust the states of their authority to tax and spend, spelling the end of federalism in any meaningful sense of the word.</p>
<h2 class="wp-block-heading">When it comes to financing health care, the states are hamstrung</h2>
<p>So why do we need federal health reform? Here&rsquo;s the answer: money.</p>

<p>During a recession, the federal government can run a budget deficit. Most economists think that&rsquo;s a good thing because federal spending can stimulate the economy and bolster the safety net. States don&rsquo;t have that luxury: They&rsquo;ve all got to balance their budgets every year. (Vermont is <a href="http://digitalcommons.law.umaryland.edu/cgi/viewcontent.cgi?article=1310&amp;context=fac_pubs#page=66">the lone exception</a>.)</p>

<p>When a recession comes, state tax revenues take a hit at precisely the moment that lots of people lose their jobs and their insurance. (Indeed, revenues take a hit <em>because</em> of the job losses.) To cover the newly uninsured, states will have to spend more, requiring the imposition of new taxes or cuts to other state spending, either of which will exacerbate the recession. Coverage expansions thus commit states to an economic policy that could harm them during downturns.</p>

<p>This is what I call the countercyclical trap, and it&rsquo;s the single biggest obstacle to state-level reform. Here, Massachusetts is the <a href="https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2888014/">exception</a> that proves the rule. When it expanded coverage, it had one of the lowest rates of the uninsured in the country, which reduced the size of any new fiscal obligations. And, with Sen. Ted Kennedy&rsquo;s help, Massachusetts cut a sweetheart deal with the Bush administration to get an extra $1 billion in Medicaid funding to support Gov. Mitt Romney&rsquo;s vision for conservative health reform. Massachusetts could thus manage &mdash; barely &mdash; to expand coverage. Other states without its advantages can&rsquo;t afford to.</p>

<p>The problem runs deeper. A state that&rsquo;s looking to expand coverage can always ask its taxpayers to foot the bill. But many of those taxpayers will complain, with some justice, that it&rsquo;s unfair to ask them to bear the whole burden. If you get health coverage through your job, you already face a reduction in take-home pay commensurate with the value of that coverage. Your friend who works at a similar job but doesn&rsquo;t get health coverage is paid somewhat better. Should you both be taxed equally in order to subsidize insurance for the higher-income worker?</p>

<p>From the state&rsquo;s perspective, it&rsquo;s both easier and more equitable to adopt a law penalizing businesses that fail to offer insurance. These pay-or-play laws have a clear political logic: Employers should live up to their end of the social bargain. They have a certain economic logic, too &mdash; an employee who starts getting coverage because of a pay-or-play law will see an offsetting wage reduction. That employee will thus &ldquo;pay&rdquo; for his own coverage, reducing the need for broad-based tax increases.</p>

<p>The trouble is that the Employee Retirement Income Security Act of 1974, or ERISA, disallows state laws that &ldquo;relate to&rdquo; the design of employee-benefit plans, including health insurance. Although there&rsquo;s <a href="http://www.yalelawjournal.org/forum/federalism-and-the-end-of-obamacare">some legal ambiguity</a>, ERISA means that the states probably can&rsquo;t adopt pay-or-play laws.</p>

<p>Here, Hawaii&rsquo;s experience is instructive. Its scheme for near-universal coverage depends on a robust pay-or-play law. That law is still on the books only because Hawaii got Congress to adopt a <a href="https://www.law.cornell.edu/uscode/text/29/1144">special exemption</a> from ERISA. Without a similar carve-out, the other 49 states will find it hard to achieve near-universal coverage.</p>
<h2 class="wp-block-heading">The compromise: Washington provides the money, states the policies</h2>
<p>Because of the countercyclical trap and ERISA, federal money must be the lifeblood of health reform. At the same time, however, the weakness of the other justifications for national intervention implies a rough division of responsibility: The feds should finance the bulk of any coverage expansion, but the states should be allowed to adopt their own distinctive approaches to health reform.</p>

<p>To a large extent, the ACA<strong> </strong>honors that division of responsibility. Its subsidies and the Medicaid expansion are financed almost entirely with federal money. The states retain authority to regulate their insurance markets and were given the option of establishing their own health care exchanges. The Obama administration also proved willing to grant broad waivers to states seeking exemptions from Medicaid&rsquo;s rules.</p>

<p>In some respects, however, the ACA is stricter than it needs to be. Take, for example, the rule requiring insurance plans to cover all the &ldquo;essential health benefits.&rdquo; It sets a comprehensive baseline package protect consumers, but it also makes insurance more expensive, which can put it out of reach of some of the very people who need it most. The tradeoffs are genuinely hard.</p>

<p>Why not let states to choose their own essential benefits package? You shouldn&rsquo;t reject the idea just because you think some states will make stupid choices. The point of federalism is that states get to make their own choices, stupid or not, unless there&rsquo;s a good reason for federal intervention. As the Yale professors Jerry Mashaw and Ted Marmor <a href="http://digitalcommons.law.yale.edu/cgi/viewcontent.cgi?article=2169&amp;context=fss_papers">argued</a> 20 years ago, &ldquo;[t]here is no agreed-upon &lsquo;best&rsquo; health insurance (or medical care) system that a state could offer.&rdquo; What if a policy that seems stupid turns out not to be so stupid after all?</p>

<p>The same goes for many of the ACA&rsquo;s insurance reforms: age banding, coverage of preventive services, even the individual mandate. To be sure, the federal government must establish guardrails to prevent the sale of junk insurance and to assure that states have a plan for achieving near-universal coverage. But there&rsquo;s a lot to like about giving states more flexibility.</p>
<h2 class="wp-block-heading">The ACHA doesn’t do the job right</h2>
<p>Republicans may talk the talk of devolving health care policy to the states, but that&rsquo;s not what the American Health Care Act does. Instead, it starves health reform of the funding upon which it depends.</p>

<p>Most significantly, Republicans intend to phase out the Medicaid expansion and to impose a hard cap on federal contributions. If a recession forces a state to exceed its cap in a given year, any overruns will come out of its Medicaid payments the following year. With that kind of shortfall, the states will have to make savage Medicaid cuts to make ends meet.</p>

<p>Republicans also want to slash the subsidies that make insurance affordable in the private market. Under the ACA, no one making less than four times the poverty level has to devote more than <a href="https://www.irs.gov/pub/irs-drop/rp-16-24.pdf">10 percent</a> of her income toward private coverage; most pay much less. The American Health Care Act would erase that affordability guarantee and, instead, extend age-based subsidies that would be <a href="http://www.vox.com/the-big-idea/2017/3/2/14791558/republican-health-care-plan-aca-enrollees-costs-premiums">much too meager</a> for most people to afford coverage.</p>

<p>If federal money is withdrawn, states will be stuck. Because of the countercyclical trap and ERISA, they won&rsquo;t be able to enact and sustain coverage expansions on their own. The end result will not be the diversity that federalism celebrates. It will be a uniformly crappy system that leaves millions of the sick and poor without coverage.</p>

<p>It doesn&rsquo;t have to be this way. A group of Republican senators led by Bill Cassidy (R-LA) and Susan Collins (R-ME) has floated an alternative, <a href="https://www.cassidy.senate.gov/imo/media/doc/PFA%20Bill%20Text.pdf">the Patient Freedom Act of 2017</a>, that retains the ACA&rsquo;s funding streams while giving the states more room to choose how to use that money. That&rsquo;s a model that deserves serious attention from both Republicans and Democrats. It might enable partisans on both sides move past the rancorous debate over the ACA.</p>

<p>For now, however, the Republicans seem intent on dismantling coverage gains across the entire United States. Their proposals trade on the rhetoric of states&rsquo; rights, but they would have the perverse effect of inhibiting state power. That&rsquo;s bad for federalism &mdash; and bad for the country.</p>

<p><em>Nicholas Bagley is a professor at the University of Michigan Law School. This piece was adapted from </em><a href="http://www.yalelawjournal.org/forum/federalism-and-the-end-of-obamacare"><em>his essay</em></a><em>, &ldquo;Federalism and the End of Obamacare,&rdquo; in the </em>Yale Law Journal Forum<em>.</em></p>
<hr class="wp-block-separator" />
<p><a href="http://vox.com/the-big-idea">The Big Idea</a> is Vox&rsquo;s home for smart, often scholarly excursions into the most important issues and ideas in politics, science, and culture &mdash; typically written by outside contributors. If you have an idea for a piece, pitch us at <a href="mailto:thebigidea@vox.com">thebigidea@vox.com</a>.</p>
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			<author>
				<name>Nicholas Bagley</name>
			</author>
			
			<title type="html"><![CDATA[President Obama flouted legal norms to implement Obamacare. Now Trump may go further.]]></title>
			<link rel="alternate" type="text/html" href="https://www.vox.com/the-big-idea/2017/2/1/14463904/obamacare-executive-power-trump-law" />
			<id>https://www.vox.com/the-big-idea/2017/2/1/14463904/obamacare-executive-power-trump-law</id>
			<updated>2017-02-13T14:39:05-05:00</updated>
			<published>2017-02-01T10:10:01-05:00</published>
			<category scheme="https://www.vox.com" term="Politics" /><category scheme="https://www.vox.com" term="The Big Idea" />
							<summary type="html"><![CDATA[This month, Kellyanne Conway, senior adviser to President Donald Trump, was asked whether the administration would refuse to enforce the Affordable Care Act&#8217;s individual mandate &#8212; the requirement that people get health insurance or pay a penalty. &#8220;He may,&#8221; she said, instantly sending a shiver of fear down the spines of health reform&#8217;s supporters. Without [&#8230;]]]></summary>
			
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<img alt="" data-caption="President Obama speaks a rally celebrating the final passage of the Affordable Care Act, in 2010, as Vice President Joe Biden and Ted Kennedy&#039;s widow Victoria Kennedy listen. | Pool / Getty" data-portal-copyright="Pool / Getty" data-has-syndication-rights="1" src="https://platform.vox.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/7907115/GettyImages_97971535.jpg?quality=90&#038;strip=all&#038;crop=0,0,100,100" />
	<figcaption>
	President Obama speaks a rally celebrating the final passage of the Affordable Care Act, in 2010, as Vice President Joe Biden and Ted Kennedy's widow Victoria Kennedy listen. | Pool / Getty	</figcaption>
</figure>
<p>This month, Kellyanne Conway, senior adviser to President Donald Trump, was asked whether the administration would refuse to enforce the Affordable Care Act&rsquo;s individual mandate &mdash; the requirement that people get health insurance or pay a penalty. &ldquo;He may,&rdquo; <a href="http://www.huffingtonpost.com/entry/kellyanne-conway-obamacare_us_58850c4de4b070d8cad34a0e">she said</a>, instantly sending a shiver of fear down the spines of health reform&rsquo;s supporters. Without the mandate, insurance markets in many states will teeter; some will probably collapse.</p>

<p>Would it be legal for Trump to decline to enforce the mandate?</p>

<p>The short answer is no. The longer answer is more complicated, but it&rsquo;s also instructive. At key points, President Barack Obama delayed aspects of the ACA in an effort to put health reform on a sound footing. The delays were classic examples of executive overreach; they never should have happened. The Republican-led House of Representatives even <a href="https://www.congress.gov/bill/113th-congress/house-resolution/676">sued</a> the president over them.</p>

<p>And now the shoe is on the other foot. With Trump in office, some of Obamacare&rsquo;s fiercest critics seem almost <a href="http://www.forbes.com/sites/theapothecary/2017/01/20/president-trumps-day-1-executive-order-can-severely-damage-obamacare/#3595595b1ac1">giddy</a> at the prospect that he might use the same weapon against the act. Pick your favorite tagline: <a href="https://www.youtube.com/watch?v=-oghc8k8mlY">payback is a bitch</a>, what goes around <a href="https://www.youtube.com/watch?v=TOrnUquxtwA">comes around</a>, &ldquo;I learned it from <a href="https://www.youtube.com/watch?v=Y-Elr5K2Vuo">watching you</a>, Dad!&rdquo;</p>

<p>What Trump has hinted at, however, would be a far greater overreach than Obama ever attempted. But Obamacare&rsquo;s critics are unlikely to care. There&rsquo;s an important lesson here about the accretion of executive power in the 21st century, how law is enforced outside the courts, and what presidential power might look like in an age of Trump.</p>
<h2 class="wp-block-heading">Obama used executive power to delay an unpopular part of the ACA</h2>
<p>The story begins in the summer of 2013. Three years earlier, Democrats had pushed the ACA through on a party-line vote, only to watch Republicans retake the House of Representatives in a midterm election that President Obama <a href="http://www.washingtonpost.com/wp-dyn/content/article/2010/11/03/AR2010110303997.html">called</a> a &ldquo;shellacking.&rdquo; The reform bill was slated for full implementation in 2014, but public support was eroding in the face of unremitting Republican hostility.</p>

<p>To dampen the opposition, the Obama administration decided to delay the implementation of the employer mandate for one year. This mandate, which penalizes employers that don&rsquo;t provide their employees with health insurance, along with the individual mandate, was among the most vilified provisions of Obamacare. &ldquo;In our ongoing discussions with businesses,&rdquo; <a href="https://obamawhitehouse.archives.gov/blog/2013/07/02/we-re-listening-businesses-about-health-care-law">wrote</a> Valerie Jarrett, senior adviser to the president, in announcing the delay, &ldquo;we have heard that you need the time to get this right. We are listening.&rdquo;</p>

<p>The decision was <a href="http://www.nytimes.com/2013/07/03/us/politics/obama-administration-to-delay-health-law-requirement-until-2015.html">front-page news</a>. It was also controversial. Under the Constitution, the president has a duty to &ldquo;take Care that the Laws be faithfully executed.&rdquo; Could the president really disregard the ACA&rsquo;s instruction about when the mandate would take effect?</p>

<p>To defend the delay, the administration <a href="https://perma.cc/Z9JF-483Q">argued</a> that the Internal Revenue Service had made a habit, over three presidential administrations, of extending &ldquo;transition relief&rdquo; from new tax statutes. That relief gave taxpayers a chance to make the business adjustments necessary to calculate and pay the tax. Since Congress had never objected to the practice, the argument ran, Congress must have thought the delays didn&rsquo;t constitute the faithless execution of the law; its acquiescence blessed the practice.</p>

<p>This wasn&rsquo;t a strong argument. The previous delays were usually for days or weeks, at most six months, and concerned narrowly targeted taxes without a lot of revenue at stake. Sure, Congress didn&rsquo;t object. But that&rsquo;s probably because it didn&rsquo;t notice or didn&rsquo;t care enough to make a stink about it. It was fiction to think that Congress had approved the open-ended power to delay tax statutes. If there were any doubt about that, its fury over the delay of the employer mandate should have dispelled it.</p>

<p>But the Obama administration went ahead anyway. No one immediately sued, probably because no one had standing to object that someone else wasn&rsquo;t being taxed. (When the House of Representatives later attempted to challenge the delay in court, its challenge was <a href="http://theincidentaleconomist.com/wordpress/oh-boy-here-we-go-again/">promptly dismissed</a> for want of standing.) Emboldened, the administration delayed the mandate for a second year for midsize employers.</p>
<h2 class="wp-block-heading">A second aggressive executive move by Obama: fixing the “if you like your plan, you can keep it” mess</h2>
<p>Then came a second crisis, and a second presidential intervention. In the fall of 2013, people started getting insurance-cancellation notices, contradicting President Obama&rsquo;s oft-repeated promise that &ldquo;if you like your plan, you can keep it.&rdquo; The ACA had established baseline rules about what counted as minimal coverage, and some of the old plans were now illegal. So insurers had to drop them.</p>

<p>Under intense pressure from an outraged public &mdash; and from Republicans making hay of the broken pledge &mdash; the Obama administration came up with an &ldquo;<a href="https://perma.cc/9EYQ-HBMT">administrative fix</a>.&rdquo; State insurance commissioners, who have front-line responsibility for overseeing health insurance, were told that they didn&rsquo;t need to apply the ACA&rsquo;s new rules to old health plans. At first, the fix delayed the ACA for 10 months; the administration later extended that by <a href="https://perma.cc/4PYV-V4HN">another two years</a>.</p>

<p>The law was clear that these plans could not be sold. To defend this delay, the administration <a href="https://perma.cc/KBZ5-Z8YB">invoked</a> its enforcement discretion. Because the executive branch can&rsquo;t enforce every law to the hilt, it argued, it&rsquo;s okay under the Take Care Clause to temporarily suspend enforcement in order to smooth a new program&rsquo;s implementation.</p>

<p>This argument never saw the inside of a courtroom &mdash; again, standing was a <a href="http://theincidentaleconomist.com/wordpress/the-d-c-circuit-boots-another-aca-lawsuit/">roadblock</a>. But it also wasn&rsquo;t a good argument. Yes, the executive branch must make hard choices about how to marshal its limited resources. We don&rsquo;t want FBI agents ticketing jaywalkers if it means they can&rsquo;t stop the next terrorist attack. There&rsquo;s a big difference, however, between setting priorities and suspending a law outright.</p>

<p>After all, the Obama administration could have quietly deprioritized ACA enforcement. Had it done so, however, insurers would still have felt obliged to follow the law &mdash; and plans would still have been canceled. Fixing the &ldquo;like it, keep it&rdquo; problem required the administration to publicly commit to non-enforcement. In so doing, the administration licensed the regulated community to ignore a congressional statute, a move that was <a href="https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2359685">inimical</a> to the Take Care Clause.</p>

<p>It also set a worrisome precedent. Although I&rsquo;m a supporter of Obamacare, I raised alarms about the delays in <a href="http://www.nejm.org/doi/full/10.1056/NEJMp1402641#t=article">the <em>New England Journal of Medicine</em></a>:</p>
<blockquote class="wp-block-quote has-text-align-none is-layout-flow wp-block-quote-is-layout-flow">
<p>A future administration that is less sympathetic to the ACA could invoke the delays as precedent for declining to enforce other provisions that it dislikes, including provisions that are essential to the proper functioning of the law. The delays could therefore undermine the very statute they were meant to protect&mdash;and perhaps imperil the ACA&rsquo;s effort to extend coverage to tens of millions of people.</p>
</blockquote>
<p>A Republican president&rsquo;s refusal to enforce the individual mandate was exactly what I feared most.</p>
<h2 class="wp-block-heading">Fairly or not, what went around is coming around</h2>
<p>And guess what&rsquo;s happening now? Trump got the message that he doesn&rsquo;t need Congress to change the ACA. His <a href="https://www.whitehouse.gov/the-press-office/2017/01/2/executive-order-minimizing-economic-burden-patient-protection-and">very first executive order</a> told his subordinates to consider delaying the implementation of any and all of the ACA&rsquo;s taxes. And remember: The individual mandate, the Supreme Court famously concluded, <a href="https://www.supremecourt.gov/opinions/11pdf/11-393c3a2.pdf">is a tax</a>.</p>

<p>But if it wasn&rsquo;t legal for the Obama administration to delay the law, it wouldn&rsquo;t be legal for the Trump administration to do so, either. Last I checked, two wrongs don&rsquo;t make a right.</p>

<p>Trump is also contemplating going further than Obama ever did. Obama&rsquo;s delays offered transition relief from laws that hadn&rsquo;t yet taken effect. They didn&rsquo;t suspend laws that were already in force. And it&rsquo;s not as if Congress acquiesced to the practice of delaying statutes. To the contrary, congressional Republicans objected repeatedly and angrily, opening themselves to the charge of hypocrisy if they defend Trump&rsquo;s illegal actions.</p>

<p>I doubt any of this will trouble Trump, however, and, again, experience with the Obama delays suggests why. At the bottom, law is a set of social practices that tell us what&rsquo;s permissible in a given community. That&rsquo;s what makes the rule of law robust: the widespread belief that certain things are just not done means the president pays a political price for transgressing legal limits. But it&rsquo;s also what makes the rule of law so fragile. If the social practice of condemning violations decays, the rule of law decays with it.</p>

<p>During the Obama era, however, almost no left-leaning lawyers spoke out against the delays. Some even defended them: Tim Jost and Simon Lazarus <a href="http://www.nejm.org/doi/full/10.1056/NEJMp1403294">argued</a>, for example, that the &ldquo;postponements are not refusals to enforce the ACA but temporary course corrections in the interest of effective implementation.&rdquo; Never mind that this set the stage for a future president to suspend other parts of Obamacare by claiming, however speciously,&nbsp;that it&rsquo;s the only way to prevent it from collapsing.</p>

<p>At the same time, right-leaning lawyers spun the delays into <a href="http://www.harvard-jlpp.com/wp-content/uploads/2015/02/Cruz_Final.pdf">a larger narrative</a> about Obama&rsquo;s perfidy and lawlessness. That narrative is exaggerated: As I&rsquo;ve <a href="http://scholarship.law.upenn.edu/cgi/viewcontent.cgi?article=9550&amp;context=penn_law_review">argued</a>, the record, taken as a whole, &ldquo;refutes the claim that President Obama has systematically disregarded the ACA&rsquo;s text or displayed contempt for legal constraints.&rdquo; But Republicans ran with it anyhow.</p>

<p>I fear we&rsquo;re about to witness a jarring role reversal. Leftie lawyers will scream about legal violations, both when they happen and when they don&rsquo;t. Rightie lawyers will offer defenses or stay mute. Lacking trusted mediators, the public will dismiss all this law talk as so much partisan bickering. And Trump will be Trump, law be damned.</p>
<h2 class="wp-block-heading">Unlike Obama, Trump doesn’t face a hostile Congress</h2>
<p>Recent press reports <a href="http://www.politico.com/tipsheets/politico-pulse/2017/01/trump-planning-more-action-on-obamacare-218419">have suggested</a> that Trump &ldquo;plans to use his administrative powers to dismantle large swaths of the health law well before Congress passes a replacement package.&rdquo; But there are also reasons Trump might hold off.</p>

<p>Obama tested the limits of executive power because he faced a hostile Congress bent on sabotaging the ACA. Trump doesn&rsquo;t have that problem: He and Congress are on the same team. Why delay the individual mandate when Congress can end it?</p>

<p>Other parts of the ACA may be more vulnerable to delays. Through the reconciliation process, congressional Republicans can repeal taxes, including the individual mandate, without worrying about the Senate filibuster. But they can&rsquo;t repeal rules that directly regulate health insurance. One of those rules, for example, requires health plans to cover the &ldquo;essential health benefits.&rdquo; Republicans hate that rule &mdash; making it a prime target for an administrative attack by Trump.</p>

<p>That said, I worry less about the illegal things Trump might do than all the <a href="http://theincidentaleconomist.com/wordpress/executive-actions-trump-could-take-to-change-the-aca/">legal things he can do</a>. To implement health reform, federal agencies wrote hundreds of rules, issued reams of guidance, and made millions of decisions. All of those efforts were undertaken in service of covering the uninsured.</p>

<p>The Trump administration doesn&rsquo;t appear to share that goal. Dismantling the ACA through the executive branch couldn&rsquo;t happen overnight: Lots of ACA rules can be revoked or revised only through a lengthy, complex process.</p>

<p>But Trump has four years. He can do a lot of damage in that time, all within the bounds of the law. If he breaks the law, he can do even more. And, in a small way, President Obama made it easier for him to do so.</p>

<p><em>Nicholas Bagley is a professor at the University of Michigan Law School</em></p>
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<p><a href="http://vox.com/the-big-idea">The Big Idea</a> is Vox&rsquo;s home for smart, often scholarly excursions into the most important issues and ideas in politics, science, and culture &mdash; typically written by outside contributors. If you have an idea for a piece, pitch us at <a href="mailto:thebigidea@vox.com">thebigidea@vox.com</a></p>
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