New York, other states sue to halt Trump from scrapping Obamacare subsidies

New York, other states sue to halt Trump from scrapping Obamacare subsidies

The Trump administration's recent decision to abruptly end a provision of the Affordable Care Act that helps insurers lower out-of-pocket medical fees for millions of Americans has spurred some states to consider taking legal action.

Meanwhile, in California, Attorney General Xavier Becerra said he similarly expected to file a suit to have the payments continue.

California Attorney General Xavier Becerra - joined by the attorneys general of Connecticut, Kentucky, and MA - told reporters that they would be filing a new lawsuit in the US District Court for the Northern District of California, that accuses the Trump administration of violating the sections of the Affordable Care Act that require the subsidies, as well as other federal law.

Becerra, joined by attorneys general from Kentucky, Connecticut, Massachusetts characterized the move by Trump as cruel and reckless maneuver to "sabotage" Obamacare.

"The subsidy is really a subsidy to the insurance company", Trump told reporters Friday. "It's past time President Trump learned he doesn't get to pick and choose which laws he'll follow and which bills he'll pay". The payments - known as cost-sharing reductions - are required by Obamacare.

States' attorneys general are lining up to sue the federal government to continue making cost sharing reduction payments to insurers, which President Trump Thursday evening indicated that he would be suspending. "Dems should call me to fix!"


In a statement, the White House said that the U.S. Department of Health and Human Services, based on guidance from the U.S. Department of Justice, has concluded that the so-called cost-sharing reduction payments.

Ending federal payments would cause premiums to rise, unless Trump changes his mind or Congress takes separate action to authorize the money.

The Trump administration late Thursday said it would immediately halt funding for billions of dollars in Affordable Care Act subsidies, calling them unlawful and potentially roiling health insurance marketplaces.

"This summer, the courts granted our intervention to defend these vital subsidies and the quality, affordable health care they ensure for millions of families across the country", Schneiderman said in a statement.

Becerra said the lawsuit is aimed at preserving the cost-sharing payments and preventing people from losing financial assistance to cover health care costs.

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