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States Sue Trump Admin Over ObamaCare Payments, More States to Join

New York Attorney General Eric Schneiderman - suing Trump over Obamacare subsidies
New York Attorney General Eric Schneiderman

Eighteen states announced Friday they are suing the Trump administration in a bid to stop Trump from ending ObamaCare subsidies for poor Americans.






The president announced Thursday that he will no longer authorize payment of subsidy payments to insurance companies. Eighteen states and Washington, D.C., signed onto the lawsuit filed Friday in federal court in California, according to Sarah Lovenheim, a spokeswoman for California Attorney General Xavier Becerra (D). More states are expected to join the lawsuit.

RELATED: Trump Ends Key ObamaCare Subsidies for Low-Income Americans.

Halting the ObamaCare subsidy payments amounts to killing the Affordable Care say critics of Trump’s decision. Without the subsidies that help the poor afford health insurance, the insurance companies will certainly raise monthly premiums for most Americans.

“Without the Affordable Care Act [ACA] and its subsidies for these families, millions more would be left in the cold without coverage. California isn’t about to turn its back on hardworking families who are fighting to hold onto their ACA health insurance…”

The plaintiffs are asking the court to issue a temporary restraining order, preliminary injunction and permanent injunction, and require the federal government to continue paying the ObamaCare cost-sharing reduction payments.



California’s attorney general Xavier Becerra tweeted that he is “prepared to sue the #Trump Administration to protect #health subsidies, just as when we successfully intervened in #HousevPrice!”. He later followed through, joined by 18 other states attorneys general.‏

New York’s attorney general Eric Schneiderman scolded Trump. “His effort to gut these subsidies with no warning or even a plan to contain the fallout is breathtakingly reckless,” Schneiderman said. “This is an effort simply to blow up the system.”






Since becoming president, Trump has threatened to stop payment of the cost-sharing reduction subsidies or CSRs, which reimburse insurance companies for costs associated with offering lower out-of-pocket costs to low-income ObamaCare enrollees.

“Without the Affordable Care Act [ACA] and its subsidies for these families, millions more would be left in the cold without coverage. California isn’t about to turn its back on hardworking families who are fighting to hold onto their ACA health insurance. We’ve taken the Trump administration to court before and won, and we’re ready to do it again if necessary,” Becerra said in a statement late Thursday, before the lawsuit was officially announced.




New York attorney general Eric Schneiderman, a Democrat, said he anticipates continuing with the litigation on a case that is been on hold for a while.

While announcing the end to subsidy payments, Trump said his motivation was stopping insurance insurance companies from cashing in. Critics scoffed at that.

SEE ALSO: Why Trump Does Not Give a Damn About Puerto Rico – He Thinks They Are Mexicans.

“As far as the subsidies are concerned, I don’t want to make the insurance companies rich,” Trump told reporters at the White House. “They’re making a fortune by getting that kind of money.”

Trump’s latest action raised concerns about disruption in the health insurance markets. The subsidies cost $7 billion this year and Congressional Budget Office (CBO) estimates it will the federal government about $10 billion for 2018.




Democrats say Trump’s motive was not to stop insurance companies from making money, but to sabotage the law because it was signed into law by Barack Obama, a man Trump deeply hates.

Democratic attorneys general from the 18 states as well as Washington, D.C., signed onto the lawsuit. The states include: California, Connecticut, Delaware, Kentucky, Illinois, Iowa, Maryland, Massachusetts, Minnesota, New Mexico, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia and Washington state.

 

 

The Staff of The Liberal Advocate News

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