House Republicans inject even more uncertainty into Obamacare chaos

House Republicans have requested a pause in their lawsuit against the Obama administration over what they say are unauthorized Obamacare subsidies. The Federal Court of Appeals for the D.C. Circuit is hearing the case, and the Republicans want a delay so that the incoming Trump administration can drop executive's defense of the provision.

The House argues that Obamacare did not properly fund the health care law's payments to health insurance companies to help low-income people pay for their out-of-pocket health care costs. The Obama administration argues that the subsidies were properly funded.

If Trump’s Justice Department doesn’t continue to defend Obamacare, the subsidies might be eliminated almost immediately. That’s because the lower court had already sided with the House, ruling that the health care law didn’t properly fund the subsidies.

If the subsidies are gone, health insurance companies would be legally allowed to drop their Obamacare health plans almost immediately. That could force millions off their health insurance and destabilize the Obamacare exchange market early next year.

At issue isn't the premium subsidies for Obamacare customers, but a provision authorized by Congress in the law that allows cost-sharing subsidies, which help people pay for out-of-pocket costs like co-pays at a doctor’s office. The House argues that while it's part of the law, they didn't explicitly appropriate funding for it. The administration argues that the law allows the funding the program from the same pot as the premium subsidies. It also argues Supreme Court precedent, that in King v. Burwell the decision clearly said that "a court must look at an entire law, not specific provisions. It says that the two subsidy programs were designed to work together as one."

The White House is not joining the request for a delay in its appeal. Should the Trump administration decide to drop the defense of this provision, the lower court ruling throwing out the subsidies would stand. It's not a death blow to Obamacare or to the subsidies, but it would drastically raise the price of using health insurance for millions of lower-income customers. That would add to the general chaos the insurers are already freaking out over.