Overnight Healthcare: Details emerge on GOP’s ObamaCare strategy as ruling nears

House and Senate Republicans on Wednesday met behind closed doors to plot strategy ahead of the looming Supreme Court decision on ObamaCare that could invalidate subsidies for millions of people.

For many members, the briefings offered the first chance to hear details from leadership about their likely proposals, which won’t be made public unless the justices rule against the law in King v. Burwell. A decision in the case could come as early as Thursday.

In the House, Republicans appeared to be moving toward a plan presented by Rep. Paul Ryan (R-Wis.) that would give block grants to states that want them, according to lawmakers leaving the meeting.

{mosads}States would get to choose how to spend the money to cover people. The block grants would last for two years, giving the next president a chance to enact an alternative to ObamaCare.

The emerging House plan would also repeal ObamaCare’s individual and employer mandates, in a nod to conservatives who are pushing to scale back the law. Top members of the House Freedom Caucus and the Republican Study Committee both appeared open to the plan on Wednesday. Read more here.

COURT DECISION TOMORROW? Speculation abounds after a tweet from CNBC contributor Larry Kudlow, who predicted that the King v. Burwell decision would come down Thursday.

“People in the know say SCOTUS decision King v. Burwell Obamacare will be handed down tomorrow. Red alert. Defcon 4,” he tweeted.

Justices still have four days left to announce their decision, including Thursday. And with a high-profile case like King v. Burwell, experts say the ruling is more likely to come down closer to the final hour.

GOP SENATORS WANT ANSWERS ON OBAMACARE PAYMENTS: Two GOP Senate chairmen are demanding to know why the Obama administration cannot account for nearly $3 billion in subsidies paid to insurance companies last year.

Senate Finance Committee Chairman Orrin Hatch (Utah) and Judiciary Committee Chairman Chuck Grassley (Iowa) sent a letter to federal health officials on Wednesday, saying they were “deeply troubled” by the report.

“This is an unacceptable programmatic issue that if left unaddressed could potentially could cause tens of billions of dollars in waste, fraud and abuse,” they wrote in a letter. Andy Slavitt, acting administrator at the Centers for Medicare and Medicaid Services, has until June 30 to respond to questions about how the department has fixed the issues. Read more here.

INSURERS TO GET FULL REIMBURSEMENT FOR HIGH CLAIMS: The Obama administration announced Wednesday that it is expanding a program designed to shield insurance companies from their most expensive claims.

The Department of Health and Human Services (HHS) said it will fully reimburse for claims between $45,000 and $250,000 – an increase from the previous rate of 80 percent. It only covers plans that were grandfathered in under ObamaCare, and therefore lack new protections.

That’s good news for the Obama administration because it shows that the reinsurance program is healthy in general, which means companies likely didn’t see a massive pent-up demand of sick customers, as some opponents had predicted. Read more here.

Thursday’s schedule

The House will vote on bills to repeal the medical device tax and the Independent Payment Advisory Board.

A House Energy and Commerce subcommittee will hold a hearing on the labeling of biotechnology in food.

State by state

California, Massachusetts find significant problems with Medicaid managed care

Virginia starts overhaul of Medicaid waivers for those with disabilities

Hard call for red states on ObamaCare subsidies

What we’re reading

Study: Prescription drug benefit did not save Medicare money

The GOP’s wish list for ObamaCare

With ObamaCare in peril at court, government offers scant relief  

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Reid on ObamaCare case: ‘I hope the Supreme Court can read English’

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